The Brazilian government has announced a new credit line worth R$4 billion to provide funding for the payroll at small and medium-sized enterprises as a way to assist them to respond to the coronavirus outbreak.
The BNDES credit line will be available to legal entities with yearly revenues between R$360,000 to R$10 million to cover their payrolls for two months of those employees who earn up to two minimum wages per month. The term of the loan will be 30 months with a grace period of six months. In return, the legal entity is required not to lay off employees for a period of two months.
It is estimated that the credit line should benefit 1.4 million businesses and reach 12.2 million workers.
Last modified: April 17, 2020