Pronampe: Senate approves new credit program for small businesses. The first phase should have R$ 5 billion
The Senate approved the new Pronampe, a crucial credit program aimed at micro and small businesses, with the text going to the sanction of President Jair Bolsonaro and an initial allocation of R$ 5 billion. This new program, which replaces the previous version that directed R$ 37.5 billion, aims to ensure the continuity and capacity to generate jobs for these businesses in a crisis scenario. It includes structural changes such as higher interest rates, which can reach 6% plus Selic, and a decrease in the percentage of government guarantees, up to 100% per operation, to encourage banks to leverage resources. Additionally, it provides for payment extensions of up to 12 months and extends the maximum term to 72 months, with 20% of the allocation specifically reserved for the events sector.
Gabriel Shinohara e Melissa Duarte
2021-05-11
Approval and Initial Details
The Senate in Brasília approved on Tuesday, after five months of deliberation, the new Pronampe credit program, benefiting micro and small businesses. The program, awaiting presidential sanction and an initial allocation of R$ 5 billion, replaces the previous version that directed R$ 37.5 billion, aiming to ensure business continuity and jobs.
Key Testimony
Senator Jorginho Mello (PL-SC), author of the proposal, emphasized the importance of Pronampe, stating: “This is the line of credit we managed to get to the micro and small businessman in Brazil. (...) Safely, responsibly, but giving the micro and small businessman the possibility to stay afloat, to stay alive, providing jobs, often going through the greatest difficulties, but truly giving meaning to keeping employment functioning.”
Changes and Conditions
The new conditions of Pronampe include interest rates that can reach 6% plus Selic per year, an increase compared to last year's rate. It also seeks to increase the leverage of resources, allowing banks to use their own funds. The project ensures that 20% of the government allocation will be directed to the events sector and offers payment extensions of up to 12 months, extending the maximum repayment term from 36 to 72 months.
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