São Paulo agency should offer US$ 75 million after July
Folha de S. Paulo
Little more than 200 São Paulo companies of the segments of machines, metal mechanics and plastics are already looking for the R$ 150 million (US$ 75 million) that Nossa Caixa Desenvolvimento, development agency of the government of São Paulo, will start offering to small- and medium-sized companies. In the State of São Paulo, there are 1.7 million companies of every size. Sebrae-SP (Brazilian Service of Support for Micro and Small Enterprises in the State of São Paulo) informs 1.3 million are micro and small companies - 11% of the industrial sector; 57%, commercial; and 32%, of the service sector. "We are analyzing the requests of the companies that look for us to evaluate those which are able to obtain our financing. We will also give priority to those with projects aimed at sector or regional development", says Milton Luiz de Melo Santos, president of the agency that has been referred to as the "São Paulo BNDES (in reference to the Brazilian Development Bank)".
Set up in March, with R$ 200 million (US$ 100 million) in cash (one fifth of what the Government should make available for loans) from the Treasury of the State of São Paulo, the agency will offer, on a first moment, two lines for working capital to small and medium companies, at an interest rate foreseen for 1% a month. In order to do so, the interested companies have to look for the trade associations that represent them and get enrolled. On a second stage, foreseen for the beginning of August, the agency should also work as a transferer of the funds of the BNDES. "We are creating the rules required so that the guarantee fund of the State of São Paulo is able to operate, making it easier for the acquisition of machines, the purchase of vehicles and the opening of franchises", says Melo Santos. For Milton Bógus, of the Fiesp (Federation of Industries of the State of São Paulo), the São Paulo fund is an "important crutch" for the small and medium companies that are going through a "credibility crisis" in order to get loans at lower interest rates.