On November 24, 2009, the Brazilian government created the Investment Support Program (Programa de Sustentaçao do Investimento, PSI) via law number 12.096. It was given a maximum financing budget of $25.4 billion ($R 44 billion).
It offers three financing instruments to support domestic production and innovation. These are:
- Capital goods PSI:
Production and acquisition of new equipment accredited by the BNDES, including agricultural vehicles, trucks, tractors, etc. Originally, the maximum financial participation ranges from 50% to 90%. Conditions and interest rates vary by product and range from 6.5% to 10%. This maximum participation was later changed to a maximum of 90% on all products except for aeronautical vehicles.
- Innovation, Machines and Efficient Equipment:
Financing for companies with innovative business practices, marketing, producing energy efficient vehicles and engineering projects that improve Brazilian technical knowledge of capital goods, defence, automotive, aeronautic, aerospace, nuclear, gas, chemical and petrochemical industries. BNDES’ maximum participation rate is 70% but may increase to 80% in the energy efficient vehicle industry. Interest rates range from 6.5% to SMEs to 7% to bigger ones.
- Transforming Projects:
Financing of companies in sectors with high technological levels and/or expertise in the engineering of products not produced in Brazil that offer the chance for greater gains in the country overall. BNDES maximum participation rate is 70% but, in this case, also offers a 20% maximum financing for the importation of capital goods for such companies to operate. Interest rates are 6.5% for SMEs and 7% for bigger ones.