Santander Brazil launches R$1bn credit programme

Through a BNDES initiative, Santander Brazil launched an emergency facility on Wednesday, August 24. It is called the FGI PEAC (Fundo Garantidor para Investimentos do Programa Emergencial de Acesso a Crédito) and is geared toward microentrepreneurs and small- and medium-sized businesses (the Brazilian Development Bank).

The programme, which attempts to increase lending by providing secured guarantees to financial institutions, has been restarted, and Santander is now accepting loan applications from companies with yearly revenues up to R$300 million. This time, the Bank intends to disburse R$1 billion in lending through the programme of the Brazilian Federal Government.

Corporate clients of the bank must only apply for this facility through branches. Depending on the size of the firm, the amounts range from R$1000 to R$10 million. This financial stimulus can be used by the company to rebalance cash flow, provide working capital, or make investments in the company.

The average rate may be up to 1.75 percent each month, and payment durations can be up to 60 months (five years).

The BNDES emergency programme, according to Alexandre Fontenelle, executive superintendent of the Corporate section at Santander Brazil, is very appealing to micro-, small-, and medium-sized business owners and is also very helpful to companies in need of financial relief.