BNDES and government announce credit for companies affected by US tariff hike

Mercadante, from BNDES, says that the first disbursements will occur starting September 15. (Photo: Jaqueline Machado/BNDES)

The Brazilian Development Bank (BNDES) and the federal government launched emergency credit measures worth up to R$30 billion on Friday (22) to support Brazilian companies affected by tariffs imposed by the United States. The goal is to preserve jobs and national production in the face of the impact of tariffs, which could reach 50% on exported products.

Most of the resources will be made available through the Sovereign Brazil Plan. Within this total, BNDES will allocate R$10 billion directly from its credit lines. This initiative will be based on the emergency support experience implemented in Rio Grande do Sul in 2024.

Emergency credit will prioritize micro, small, and medium-sized businesses

The plan will prioritize companies that have recorded at least 5% of their total revenue coming from exports of products impacted by the tariff hike. Those whose revenues were impacted by more than 20% will be able to access financing on more favorable terms.

The government states that special attention will be given to micro, small, and medium-sized businesses. "Our priority is those who are suffering the most from tariffs. Those who allocate more than 5% of their revenue to the United States will have priority," commented economist Aloizio Mercadante, president of the BNDES (Brazilian Development Bank).

The credit lines include options for working capital and market diversification. Beneficiary companies must also maintain their employee numbers, with monitoring via eSocial. "No one will be left behind. Everyone who has been impacted will be supported," stated Mercadante.

During a press conference, Mercadante did not specify the number of companies expected to benefit. He expects to have these figures by September 8th, with the first disbursements beginning on September 15th. "The first approvals will go to companies with the best ratings and banking relationships," he commented.

For the BNDES, tackling the tariffs will require similar treatment to that which occurred with the support provided to Rio Grande do Sul companies paralyzed after the floods. "Now, there is no paralysis of companies, but the tariffs reduce part of their revenue in the country, especially for those exporting products to the United States," it indicated.