ANNOUNCEMENT 22 May 2019

The National Bank for Economic and Social Development of Brazil (i.e. BNDES by its acronym in Portuguese), has announced the creation of a new credit program that will support investments in sectors of high technological complexity and knowledge-intensive, such as Information Technology and Communications, Education, Creative Economy, Energy Efficiency, Health Equipment, Autoparts, Capital Goods and Defense and Innovation.

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Inception date: 22 May 2019 | Removal date: open ended

State loan

On 22 May 2019, the BNDES has launched the BNDES Direct 10, a new credit program to support investments in sectors of high technological complexity and knowledge-intensive, such as Information Technology and Communications, Education, Creative Economy, Energy Efficiency, Health Equipment, Autoparts, Capital Goods and Defense and Innovation, with a focus on small and medium-size companies. 

Through this program, the development bank offers credit lines with beneficial interest rates to local companies seeking capital to carry out investments in technology-intensive sectors.

Beneficiaries will be able to access loans between BRL 1 million (circa USD 250,000) and BRL 10 million (USD 2.5 million) with flexible guarantees and term periods ranging between 7 and 11 years.

Only SMEs with annual revenues ranging between BRL 3 (USD 744,000 at the time of the announcement) to BRL 300 million (USD 74.4 million) are entitled to apply for BNDES Direct 10.

The new program is part of a new portfolio developed by BNDES for SMEs, a segment that already accounts for more than 40% of the institution's disbursements. To this end, earlier in May and March, the BNDES has launched two additional credit lines through which the bank expects to distribute USD 746 million (please, see related state acts). Hence, it is expected that the total resources allocated through the Direct 10 credit program will also surpass USD 100 million.

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