Aug 17, 2020

 The Emergency Credit Access Program (Peac), operated by the Brazilian Development Bank (BNDES), reached the mark of R$ 10 billion in credits granted to 12,529 small- and medium-sized companies (SME), with 80% of this amount being guaranteed by the program. These companies employ more than 660,000 people. 

The program initiated operations on June 30. "Peac aims to grant guarantees that serve to normalize the functioning of the credit market for small- and medium-sized companies. In less than two months, the more than R$ 10 billion in funding made through the program demonstrates its effectiveness, as well as the importance of joint action by the government and the private sector in creating innovative solutions", said the director of Credit and Guarantee at BNDES, Petrônio Cançado. 

Currently, 35 financial agents are already qualified to offer loans, which can range from R$ 5,000 to R$ 10 million. These institutions are responsible for the final decision to use the program guarantee and evaluate credit application, at a moment when they structure each of their operations.  

One of the financial institutions that most used Peac to offer guarantees to SMEs was Banco Safra, which has already released R$ 3.1 billion in credits. For Safra, it is very important to participate in Peac, said Eduardo Pinto de Oliveira, Products director at the financial institution. "At times like this, we know that the granting of credit is essential to preserve companies. This program, created in an effort by the BNDES and the Ministry of Economy, reduces risks and allows the wheel of the economy to continue running through credit.” He also stated that, in the context of the pandemic, the Peac is very important for small- and medium-sized companies to follow their stories: “This means easing the situation, maintaining jobs and creating positive expectations about the future and the recovery of the economy.”

Peac aims to unfreeze credit for small- and medium-sized companies that earned between R$ 360,000 and R$ 300 million in 2019. Under the program, guarantees are granted, mitigating the economic impacts of the Covid-19 pandemic. The guarantee coverage is 80% of the value of each operation, limited to up to 30% of the total value of each financial agent's portfolio for credit operations granted to small companies, and up to 20% of the total value of each portfolio financial agent for operations with medium-sized companies.

Not only are credit operations contracted with funds from the BNDES (through some of its lines of credit) subject to the emergency guarantee of the Peac, but also those offered by financial institutions themselves. Such resources can be used by companies for different purposes, according to each line, including to reinforce their working capital. 

Through a partnership with the Special Secretariat for Productivity, Employment and Competitiveness (Sepec) of the Ministry of Economy, the resources used for the guarantees came from an initial contribution of R$ 5 billion from the Treasury. These guarantee resources allow to leverage resources for funding up to 5 times. Thus, the value of loans can reach R$ 25 billion.

From the initial investment of R$ 5 billion, the amount of R$ 2.3 billion, which corresponds to 46% of the program's initial budget, has already been used. Thus, in view of the aforementioned leverage, it was possible to grant more than R$ 10 billion in funding through financial agents. 

Depending on the evolution of demand, the Treasury may put a total of up to R$ 20 billion in the program, which is effective until December 31, 2020, which may mean R$ 100 billion in financing for small- and medium-sized companies. 

Companies seeking to raise funds with the PEAC guarantee can find more information on how the program works at the BNDES' website.

See the list of qualified financial agents.