ANNOUNCEMENT 31 Aug 2020
The Executive of Brazil allocated new resources to the Pronampe scheme adopted earlier in 2020.
NUMBER OF INTERVENTIONS
Government of Brazil. Governo do Brasil. Notícias. "Pronampe destina mais R$ 12 bilhões para apoio à micro e pequenas empresas" de 1 de setembro de 2020. Avaialbel at: https://www.gov.br/pt-br/noticias/financas-impostos-e-gestao-publica/2020/09/pronampe-destina-mais-r-12-bilhoes-para-apoio-a-micro-e-pequenas-empresas
Official Gazette. Diário Oficial da União. Medida Provisória Nº 997, de 31 de agosto de 2020. Available at: https://www.in.gov.br/en/web/dou/-/medida-provisoria-n-997-de-31-de-agosto-de-2020-275158972?_ga=2.63121775.1149853434.1606209211-1109643743.1602083028
On 31 August 2020, the Executive of Brazil adopted Provisional Measure Nº 997 revising the duration and budget of the National Support Program for Micro and Small Enterprises (i.e. Pronampe by its acronym in Portuguese). With the new regulation, the total resources allocated to this scheme increased by BRL 12 billion (ca USD 2.2 billion). Previously, in May 2020, BRL 15.9 billion were allocated to this program (see related state act).
The National Support Program for Micro and Small Enterprises provides credits of up to to 30% of the annual gross revenue of the beneficiary calculated based on the year of 2019, except in the case of companies that have less than 1 year of operation, in which the loan limit will correspond to up to 50% of its capital stock or up to 30% of the average of its monthly income calculated since the beginning of its activities, whichever is more advantageous.
Loans provided under this scheme will have a maximum annual interest rate equal to the rate of the Special Settlement and Custody System (Selic) plus 1.25% on the amount granted, with a term of 36 months.
The Pronampe programme was instituted to provide economic relief to SMEs during the Coronavirus pandemic.
Provisional Measure Nº 997 entered into force on 1 September 2020.