Oct 6, 2020

 Right as the Emergency Credit Access Program (PEAC) reaches R$ 60 billion in loans to small- and medium-sized enterprises, the Brazilian Development Bank (BNDES) also starts to accept larger companies in the program, with revenues greater than R$ 300 million. Thus, with the new regulation published in October 6, BNDES now adds to PEAC this specific use of resources of the National Treasury. The change was incorporated into the text by the National Congress during the processing of the Provisional Measure that resulted in Law No. 14,042, approved this year.

Up to 10% of the resources invested by the Treasury in the program – R$ 2 billion of the R$ 20 billion total – are to be provided in credits guaranteed by PEAC for the new category for large companies That is, with natural leverage of up to five times between the volume of securities and the final loan at the end of the chain, this new regulation will allow the granting of up to R$ 10 billion in financing to this segment. 

By the rules, only large companies in the sectors of the economy most impacted by the pandemic can benefit. These sectors are listed in Ordinance 20,809 of 2020 of the Special Secretariat for Productivity, Employment and Competitiveness of the Ministry of Economy. Moreover, to have access to the credit guaranteed by the program, the companies must make a commitment to maintain jobs for two months from the hiring.

PEAC’s emergency guarantee is subject not only to credit operations contracted with BNDES resources (by some of its credit lines), but also those offered by the financial institutions themselves. Such resources can be used by enterprises for different purposes, according to each credit line, including to reinforce their working capital. Currently, 45 financial agents are already qualified to offer loans, ranging from R$ 5,000 to R$ 10 million. The limit set for small and medium-sized enterprises has been maintained for large ones. 

The total volume of loans – R$ 60 billion – guaranteed by PEAC was reached on Monday (5). The resources benefited more than 80,000 small- and medium-sized enterprises, which employ approximately 3.6 million people. Also on Monday, BNDES received the final R$ 5 billion from the National Treasury destined to the program, thus totaling the R$ 20 billion planned to ensure access to credit in this time of crisis.

These funds enable the leverage of the credit value in up to 5 times, which may mean up to R$ 100 billion in financing until the end of the program’s term on December 31, 2020. Of the contributions made, R$ 13.2 billion have already been committed with securities (which correspond to 65.8% of the total resources of the program). The average value of loans taken to date was R$ 659,000. 

About PEAC – The program aims to unlock credit for small- and medium-sized enterprises, associations, private foundations and cooperatives, except credit, which grossed between R$ 360,000 and R$ 300 million in 2019. Ceiling that is now changed with the new regulation. 

PEAC provides collaterals to financial agents through the Investment Guarantee Fund (FGI), which is administered by BNDES, helping to mitigate the economic impacts caused by the Covid-19 pandemic. Coverage is 80% of the value of each operation, limited to 30% of the total portfolio of each financial institution for credit operations granted to small enterprises, and up to 20% for operations with medium-sized entities.

On the BNDES website, it is possible to know more about the program and consult the qualified financial institutions, as well as monitor the performance of each one. 

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions focus on socioenvironmental and economic impacts in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in formulating solutions for resuming economic growth.

Service:

More information about PEAC.

Ordinance with the most impacted sectors.