What’s the PRONAMPE brazilian program ?

If you’re reading these lines, you may have heard of the PRONAMPE program, that has been recently settled by the local governement. In this new article, we intend to give you the main outlines of this device whose overall objective is to 

mitigate the economic impacts caused by the coronavirus pandemic on the micro and small enterprises.

You’re leading a business in Brazil and need advice to benefit from the PRONAMPE program ? Feel free to contact our team of experts on the brazilian labour market.

PRONAMPE in Brazil :  context & principle

The National Support Program for Micro and Small Enterprises (Programa Nacional de Apoio às Microempresas e Empresas de Pequeno Porte) is a federal government program aimed at the development of micro and small enterprises. The program was established by Law No. 13,999 of 18 May 2020. 

PRONAMPE was created in an attempt to unlock access to credit for micro and small businesses, which have reported difficulties in obtaining financing in the banking segment during the novel coronavirus pandemic. The program was already managed by Caixa Econômica Federal (CEF), which initially made R $ 3 billion available to micro and small businesses, and is now also available at Banco do Brasil.

A financial support allowing investments & operational expenses  

Under the PRONAMPE program, credit transactions can be used for investments and working capital alone, or associated with the investment. 

In other words, micro & small businesses will be able to use the resources obtained to make investments (acquire machines and equipment, carry out renovations) and / or for operational expenses (employee salaries, payment of bills, rent, purchase of raw materials, goods…).

What’s the source of financing for PRONAMPE’s credit operations ?

The source of funding for the operation of PRONAMPE comes from the operational institutions themselves. There will be no contribution of public resources to credit operations. The government has paid R $ 15.9 billion to the Operations Guarantee Fund (FGO), managed by Banco do Brasil, to serve as collateral for credit transactions with financial institutions that are members of Pronampe.

What are the operational financial institutions ?

The financial institutions affiliated to PRONAMPE can request the insurance of the Operation Guarantee Fund – FGO, governed by Law 12.087 of 2009 and managed by Banco do Brasil, up to 100% of the value of the transaction.

Several financial institutions have already joined the PRONAMPE program. Here they are :

• Banco do Brasil SA,
• Caixa Econômica Federal,
• Banco do Nordeste do Brasil SA,
• Banco da Amazônia SA,
• State banks and State development agencies,
• Credit unions and cooperative banks,
• Institutions that are part of the Brazilian payment system,
• Technological financial services platforms (fintechs),
• Civil society organizations of the credit society
• Other public and private financial institutions authorized to operate by the Central Bank of Brazil.

Any question about the PRONAMPE program ? Need administrative or financial support to develop your activity here in Brazil ? Our customer advisors will deal with you personally and give you exactly the right advice for your needs.