The federal government sanctioned without vetoes the bill that institutes the Digital Microcredit Simplification Program for Entrepreneurs (SIM Digital), created with the objective of promoting access to credit and the expansion of guarantee mechanisms for the granting of productive microcredit for entrepreneurs.
When converted to Law 14,438, the project changes the management and collection procedures of the Severance Indemnity Fund (FGTS), which can be used to acquire shares in the Microfinance Guarantee Fund (FGM), in order to make credit operations viable. The fund will not have any type of guarantee or guarantee from the Union.
According to the General Secretariat of the Presidency of the Republic, the initiative will result in the creation of “mechanisms to stimulate popular entrepreneurship and the formalization of small businesses, through the creation of credit guarantee instruments”.
To this end, the law defines that SIM Digital microcredit operations will have reduced interest rates and a maximum term of 24 months; that the credit line is R$ 1,500 for a person who carries out an urban or rural productive activity, and R$ 4,500 for the Individual Micro Entrepreneur (MEI). According to the text, the operations should preferably target women.
You credit access incentives are aimed at individual microentrepreneurs, with annual revenues of up to R$ 81 thousand; micro-entrepreneurs, with revenues of up to R$ 360 thousand; and small entrepreneurs, revenue between R$ 360 thousand and R$ 4.8 million. In addition, the program seeks to encourage the formalization and social security inclusion of low-income micro-entrepreneurs.
“It is important to point out that the source of funds for the program comes from financial institutions participating in SIM Digital, which will pay for the program with their own resources,” the secretary said in a note.
Any bank can lend resources with the guarantee of the Microfinance Guarantee Fund (FGM), created by Caixa Econômica Federal (CEF). The government’s expectation is that the Digital SIM will benefit 4.5 million entrepreneurs.
