New funding for working capital targets producers, cooperatives, cerealists, and agricultural suppliers.
Starting November 1, the Brazilian Development Bank (BNDES) has made available an extraordinary credit line of $5 billion through the BNDES Emergency Program for the state of Rio Grande do Sul.
Of this amount, $3.3 billion is earmarked specifically for the agricultural sector via a working capital financing line that will support farmers, agricultural cooperatives, cerealists, and suppliers of agricultural inputs.
Approximately $1.5 billion of the $3.3 billion is designated for small and micro-sized clients, aiming to address the sector’s immediate financial needs. These funds can be used for payroll, supplier payments, inventory replenishment, and other essential expenses to support the continuity and recovery of operations, according to BNDES.
Aloizio Mercadante, President of BNDES, stated that this measure is the result of a joint effort between BNDES and the Federal Government, which expands the total budget for the program’s lines to cover businesses of all sizes, rural producers, independent freight transporters, and individual entrepreneurs in Rio Grande do Sul.
According to BNDES, the program has already reached clients across 464 municipalities, with over 5,600 operations conducted. The program is managed by more than 40 BNDES partner financial institutions, including commercial banks, credit cooperatives, and development banks with operations in Rio Grande do Sul.
