Apr 3, 2014

•  The amount is R$ 500 million, set to expire in December 2015

The Brazilian Development Bank (BNDES) has created a program to stimulate investments in innovation and increase the competitiveness of smaller companies.

With a total budget of R$ 500 million, the BNDES Support Program for Innovative Micro, Small and Medium-sized Enterprises (BNDES MPME Inovadora) is already in operation, and its expiry date (the Bank’s deadline to submit financing requests) ends on December 31, 2015.

Companies with annual earnings of up to R$ 90 million that, starting in 2011, have invested in technological services using the BNDES Card or accessed the SIBRATEC, SEBRAETEC or SENAI SESI Innovation Programs, can request support through the network of financial agents accredited by the BNDES (including public and private financial banks and development agencies).
 
Companies that hold a granted patent or a patent request valid in the year the operation protocol was issued, or two years before, can also access the support program. For these companies, investments that complement their innovative processes will receive support.

The program will also provide support to companies located in Technology Parks and incubators for business plans, implementation or modernization, and investments to develop new products and processes. Also eligible for support are those that, in their corporate breakdown, hold investment funds in shares and/or mutual investment funds in emerging companies, regulated by Brazil’s Securities and Exchange Commission (CVM).

The micro, small and medium-sized enterprises that meet any of the criteria above can also access the BNDES MPME Inovadora’s support through working capital, strengthening their financial capacity.

Conditions – The interest rate can be fixed (4% per year) or variable. Aside from being available to nationally-controlled corporations, fixed-rate financing can also be offered to the foreign-controlled companies whose economic activities correspond to specified sectors in relevant legislation (Decree Nº 2,233/97).

In counterpart, the program can offer support to foreign-controlled corporations whose sectors are not covered in said Decree through variable interest rates.
 
For isolated working capital, the interest rate will be based on the SELIC finance cost, plus the BNDES’ spread of 0.4% (or 1.3% for companies with annual earnings between R$ 16 million and R$ 90 million) and the accredited financial institution’s spread, which is to be negotiated with each client.

The BNDES’ participation is up to 90% of the amount of eligible items for financing operations with variable interest rates, and 100% for financing operations with fixed rates. The financing limit for each client is R$ 20 million per year, with a 10-year loan term, including the grace period of three to 48 months.

In the cases of isolated working capital, the annual limit per client is R$ 10 million, with a loan term of up to 3 years, including the grace period of 3 to 12 months.