The federal government’s Believe in First Step Program, which opens credit to micro-enterprises and individual micro-entrepreneurs (MEIs), was sanctioned by President Luiz Inácio Lula da Silva and the Believe law (1,725/2024) was published in an extra edition of Official Gazette of the Unionthis Thursday (10).
The program also establishes the Desenrola Pequenos Negócios, which is the way for MEIs, micro-enterprises, small businesses and cooperative societies to renegotiate debts. Another axis of the new law establishes the Credit and Debt Financing Program for Individual Micro-entrepreneurs and Micro-enterprises, the Procred 360, with an exclusive credit line for those who earn up to R$360 thousand per year.
Finally, the new legislation creates a special line of credit to finance the acquisition of vehicles used to provide taxi services.
According to the Ministry of Entrepreneurship, Microenterprise and Small Business (MEMP), Brazil has 15 million individual microentrepreneurs (MEIs), plus 7.5 million companies opting for Simples Nacional, which adds up to around 22 .5 million companies. The amount represents 99% of companies in the country.
In an interview, this Thursday (10), on the program Good morning, Ministerfrom CanalGovbroadcaster of Brazilian Communication Company (EBC), the Minister of Entrepreneurship, Microenterprise and Small Businesses, Márcio França, explained that the government’s objective is for small entrepreneurs, whether MEI or Simples participants, to feel welcomed. “It’s a program made for small entrepreneurs, it’s designed for these people, first because it allows you to unwind, which is a way for you to renegotiate your debts, the discounts end up being in the range of 90% to 95%, so, a lot we took advantage,” he said.
Minister Márcio França also stated that the target audience for the measures announced to generate opportunities for productive inclusion are families in situations of socioeconomic vulnerability registered in the federal government’s Single Registry for Social Programs (CadÚnico),
The Brazilian Micro and Small Business Support Service (Sebrae) points out that of the 15.5 million individual microentrepreneurs formalized in Brazil, 4.6 million are registered with CadÚnico.
Procred 360
Procred 360 offers loans to MEIs and companies with annual revenue of up to R$360,000. The value of the loan taken can vary up to 30% of the company’s revenue in the previous year and, if it is a female entrepreneur, up to 50% of the revenue.
The program allows indebted entrepreneurs to renegotiate their debts, with interest rates 50% lower than those charged in the financial market.
In addition to better financing conditions exclusively for small businesses, the federal government will act as a guarantor of loans, to reduce the risk of default, providing security to creditor banks, and with the aim of stimulating access to credit.
Márcio França explained that the motivation for the federal government to be the guarantor in contracting the credit line is that indebted MEIs and microentrepreneurs often face difficulties in financial institutions.
“By creating an exclusive line of credit for MEIs and micro-enterprises, we created a protective barrier for small businesses, which previously competed for the same credit with large companies,” said the minister.
In total, the government will allocate the remaining R$1.5 billion from the Operations Guarantee Fund (FGO) of the Desenrola program, which renegotiated the debts of more than 15 million individuals. With this initial guarantee, R$5 billion in credit will be offered. Subsequently, the minister predicts that more resources should be allocated to expanding the supply of credit.
Márcio França highlights that the female audience has priority in the initiative. “This is not a gender identity issue. It’s because women are better payers.”
Currently, Banco do Brasil and Caixa Econômica Federal are the institutions participating in the Believe in First Step program for credit offers. Both banks can be sought out by entrepreneurs interested in accessing the service.
In addition to access to credit, Crédito beneficiaries will receive guidance on business planning and monitoring of operations carried out by banks.
