MICROCAPITAL BRIEF: Brazil Loosens Eligibility Requirements, Streamlines Online Microloan Application to Assist Small Businesses During COVID-19 Pandemic

Brazil’s Conselho Monetário Nacional (CMN), the country’s National Monetary Council, recently raised the revenue limit for firms to be eligible for microloans in an effort to assist more small businesses struggling as a result of the COVID-19 pandemic. The maximum income had been BRL 200,000 (USD 35,500) per year and is now BRL 360,000 (USD 64,000). CMN also streamlined the online loan application process, removing the in-person component.

“We know that it is important to keep the credit channel on and always working,” said Banco Central do Brasil President Roberto Campos Neto.

CMN seeks to promote monetary stability as well as foster national economic development. Founded in 1964, the council is led by the Minister of Finance; the Minister of Planning, Development and Management; and the President of Banco Central do Brasil, the country’s central bank.

By Kate Finster, Research Associate

Sources and Additional Resources

NASDAQ article on microcredit liberalization in Brazil
https://www.nasdaq.com/articles/brazil-announces-new-measures-to-expand-credit-to-micro-sized-firms-2020-09-24

Banco Central do Brasil webpage on CMN
https://www.bcb.gov.br/en/about/cmnen

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