ANNOUNCEMENT 15 Aug 2013

On August 15, 2013, the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) announced a new set of subsidies and lines of financing worth USD 427 million to be given to companies focusing on creating agricultural goods, processing them or creating equipment for agricultural purposes. This excludes sugar-based goods.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

State loan

On August 15, 2013, the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) announced a new program that incentivizes R&D in the agricultural sector, excluding sugar cane related goods. Under the INOVA Agro program, Brazilian agricultural companies can apply for subsidised financing for their R&D projects. This program defines companies that produce agricultural goods, agrochemical components, improves animal health, improves food quality and its preservation time, or agricultural equipment and its storage to fit under INOVA Agro's program. The total funds available for INOVA Agro are R$ 1 billion (USD 427 million).

Only companies that are based in Brazil may apply for these benefits and the financed projects must be undertaken on Brazilian territory. Companies that wish to apply must have revenues of over R$ 16 million or partner with a technological company which passes this revenue requirement. Furthermore, projects must have a minimum value of R$ 10 million in order to qualify. The interested companies must receive approval by the BNDES and the FINEP in order to benefit from the program. The BNDES and FINEP may finance up to 90% of the projects' total cost.

The Brazilian government, alongside with the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP), run and finance the program "INOVA firms". Originally launched in 2013, this program's main goal is to innovate new technologies and make Brazilian companies more competitive. The program achieves this by targeting new sectors through time and giving their companies temporal benefits by 1) financing R&D, 2) financing companies directly as shareholders, or 3) providing loans at subsidised interest rates. Involved governmental entities may also guarantee future demand for their goods in some cases. Sectoral programs are launched at the discretion of BNDES and last for a predetermined period of time where companies may apply. 

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