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Hiring reopened to strengthen small businesses

Micro and small companies can use the resource in investments and working capital. 

 

The contracting of loans through the National Program to Support Micro and Small Businesses (Pronampe) was reopened this Wednesday (7). There will be R$ 25 billion in resources to support the strengthening of businesses facing difficulties due to Covid-19. In 2021, the granting of credits will take place until December 31st. For the following years, new schedules will be defined.

 

Pronampe was made permanent by law in June this year. One of the novelties of this new stage of the program is that entrepreneurs will have more time to pay the financing.

 

The grace period, which is the period to start paying, was extended from 8 months to 11 months. And the total term for companies to pay off the loan went from 36 months to 48 months.

 

In addition, 20% of the resources made available by the program go to companies that fit into event sectors. “These sectors have suffered brutally from the crisis, because, unlike bars or restaurants that still manage to open at half capacity, during limited hours, this sector of events has not had any type of economic activity. And it is a highly employing sector in the country”, explained Michael Dantas, Undersecretary for Micro and Small Business Development, Entrepreneurship and Crafts, at the Ministry of Economy.

 

Dantas explained that, in order to seek Pronampe resources in financial institutions, micro and small businessmen need to take the letter sent by the Federal Revenue. “To participate, you must have received a letter from the IRS. In this letter, they mention your declared income in 2019 and 2020 and, based on it, you will be able to obtain a loan from Pronampe at your branch.”

 

Micro and small companies can use the resource in investments and working capital, such as to pay wages, water, electricity, rent, inventory replacement and purchase of machinery and equipment. The money cannot be used to distribute profits and dividends among the business partners.

 

Pronampe in practice

The period he spent with the business closed due to the social isolation imposed by Covid-19 made Juarez Fernandes Filho, owner of a pastry shop in Florianópolis (SC) for 36 years, need a loan to maintain the business.

 

“I have my company open today thanks to Pronampe. We were closed for a month at the beginning of the health crisis and when I reopened I had a lot of bills to pay, slips, payroll, I couldn't afford it. With Pronampe, I managed to pay all my bills, I kept my employees, I didn't fire anyone and now that I'm going to start”, said Juarez Fernandes.

 

According to the Ministry of Economy, micro and small companies represent 30% of the Gross Domestic Product (GDP) and 50% of jobs in the country.

 

Who can participate

The Pronampe credit line is available to companies with sales of up to R$4.8 million in 2020.

 

The company must be in good standing with social security.

 

It must maintain the number of employees in equal or greater number in the period that goes from hiring to 60 days after the release of the financing.

 

Conditions

The deadline for payment is 48 months.

 

A grace period of 11 months, already included in the payment deadline. The total term of the transaction is 48 months.

 

The interest rate is the Selic plus up to 6% per annum.

 

The hiring limit is up to 30% of 2019 or 2020 revenues, whichever is greater.

 

credit stimulus

In another initiative to support businesses impacted by the economic effects of Covid-19, the President of the Republic, Jair Bolsonaro, edited, this Wednesday (7), Provisional Measure (https://www.in.gov.br/ en/web/dou/-/medida-provisoria-n-1.057-de-6-de-julho-de-2021-330641676) which institutes the Credit Incentive Program. The beneficiaries are micro and small companies, rural producers and individual micro-entrepreneurs, both individuals and companies, with annual gross revenue of up to R$4.8 million.

 

The program creates incentives for banks to lend to these companies and entrepreneurs by granting more advantageous treatment to the capital base of participating financial institutions. According to the General Secretariat of the Presidency of the Republic, it is capable of generating up to R$ 48 billion in credit, the operation of which will be carried out with resources from the institutions authorized to operate by the Central Bank. Credit operations can be contracted until December 31 of this year.

 

Category

Work, Employment and Welfare