House Approves Project Making Pronampe Permanent | Policy

Text was The Senate approved it in March this year. However, the rapporteurs of the proposal in the Chamber’s Economic Development Committee, Joaquim Pasarinho (PSD-PA), and in the plenary, Joice Hasselmann (PSL-SP), made changes.

As a result, the senators would need to vote on the proposal again.

The program was established in May 2020 to help small and micro-business owners during the economic crisis caused by the pandemic, and the program has been renewed since then.

Pronampe is intended for:

• Small business With invoices Up to 360,000 Brazilian reals Per year;
• Small business With annual sales From 360,000 Rials to 4.8 Million Rials.

There are two options for lines of credit:

• Up to 30% of the company’s total annual revenue per year: Which corresponds to a maximum of 108,000 R $ for small businesses and 1.4 million R $ for small businesses;
• New businesses, with less than a year of operation, can choose what is most advantageous between two options: The loan limit can be up to half of the principal or up to 30% of the average monthly bills – in this case, the average is multiplied by 12 at the time of calculation.

One of the changes made in the room is that these percentages can be calculated in contracts in 2021 based on 2019 or 2020 revenues, whichever is greater.

According to the proposal, loans with participating financial institutions on the basis of the Selic rate, in addition to:

• 1.25% on the amount awarded for operations awarded until December 31, 2020;
• 6% as a maximum of the contracted credit for operations executed as of January 1, 2021.

The project authorizes the Federal Government, until the end of 2021, to increase its participation in the Operations Guarantee Fund (FGO), which guarantees to the participating banks contracted operations in Pronampe, from:

• Budget allocations stipulated in the annual budget law;
• Private donations
• Resources arising from external credit operations with international organizations;
• Parliamentary amendments by the committee and rapporteur.

According to the proposal, the participating institutions in Pronampe operate with their own resources and the FGO guarantee can reach 100% of the value of each transaction, as long as it is limited to 85% of the portfolio.

If the increase in the Federation’s participation in the FGO is made through exceptional appropriations to deal with public disasters, resources must be separated from others, to ensure use for this purpose. Credit with these resources should be granted until the end of 2021, and can be extended up to 12 months.

Find out what other points the room agreed to:

• 20% stake in FGO for MSEs benefiting from the Juvenile Sector Emergency Resumption Program (PERSE), which must be regulated by the executive branch, which may, according to the text, “include other important sectors”;
• Extending the period of installments that matured at the end of last year by up to 12 months;
• The ability to transfer Pronampe operations, allowing transactions to be transferred between participating banks.