BNDES – Emergency credit for small and medium-sized companies

02/04/2020

HIGHLIGHTS

BNDES - Emergency credit for small and medium-sized companies


As a support measure to face the economic effects of the COVID-19 coronavirus pandemic, BNDES expanded the working capital offer of the credit line for small and medium-sized companies with annual revenues of up to R$ 300 million until September 30, 2020 , with a financing limit of up to R$ 70 million per year.

See the information board below:

BNDES – Credit for Small and Medium Companies
Who could request: Companies with revenue up to R$ 300 millions.
What can be financed Working capital up to R $ 70 million
Interest rate: TFB (BNDES fixed fee) or TLP (associated to IPCA) or Selic + 1,25% per year. (BNDES Fee) + Financial agent fee.
Period: Up to 5 years, with a grace period of up to 2 years.
Guarantee: Negotiated freely with the accredited financial institution. It is possible to supplement the guarantee with BNDES FGI (Fundo Garantidos do Investimento).


Required proof of regularity:

  • Debt Clearance Certificate related to Federal Taxes and Active Debt of the Union (CND), or its positive version with negative effect, issued jointly by the Federal Revenue Service of Brazil (RFB) and the Attorney General of the National Treasury (PGFN). According to Joint Ordinance no. 555/2020, the CND validity period valid on March 24, 2020 was extended by 90 days. Thus, if your CND was valid until that date, this condition is met for up to 90 days;
  • Proof that the company is up to date with the delivery of the Annual List of Social Information (RAIS);
  • Evidence that the company is up to date with the obligations related to the FGTS, upon presentation of the FGTS Certificate of Good Standing (CRF), issued by Caixa Econômica Federal.

Note: The environmental license is not required for working capital financing.


Application:

The company must contact its relationship bank or access the list of accredited financial agents (on BNDES website), and negotiate fees, terms, amounts, and guarantees. After that, the bank will send the proposal for validation by the BNDES.

According to BNDES, the analysis will be in real time, and the release of funds will be carried out, through transfer by the company's relationship bank.

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HIGHLIGHTS

Provisional Measure no. 931: new deadline for ordinary general meetings



Through the publication of Provisional Measure (MP) no. 931, companies were granted more time to hold ordinary general meetings. This is yet another standard with measures to respond to the effects of the COVID-19 coronavirus pandemic.

The MP allows public limited companies (open or closed) and limited companies, whose fiscal year ends between December 31, 2019 and March 31, 2020, to hold their ordinary general meetings or shareholders' meetings / meetings within the term of seven months from the end of your fiscal year.

In addition, due to the MP, contractual provisions that require the ordinary general meeting to be held in a period shorter than that established in the new term will be considered to have no effect in the fiscal year 2020.

The terms of management or performance of the administrators, members of the fiscal council and statutory committees are extended until the ordinary general meeting is held or until the meeting of the board of directors occurs, as the case may be.


Commercial Boards

A corporate act signed as of February 16 may be presented to the Board of Trade when work is resumed, attributing retroactive effects to the respective act.

The requirement of prior filing of an act for the issuance of securities and for other legal transactions is suspended as of March 1, 2020 and the filing must be made at the respective commercial board within thirty days, counting from the date on the commercial board to reestablish the regular provision of its services.


Online meetings and assemblies

There is also permission for remote voting at meetings and assemblies for all types of companies, through an amendment promoted in the wording of the Brazilian Corporate Law and Civil Code. This possibility depends on regulations from the National Department of Business Registration and Integration (DREI).


CVM

MP 931 delegated to the Securities and Exchange Commission (CVM) the power to extend the terms established in the Brazilian Corporate Law for public companies, which was regulated by Resolution no. 849.

Among other points, it was defined for public companies with fiscal years ending between December 31, 2019 and March 31, 2020, which present the corresponding financial statements within up to five (5) months.

Limited Companies

Shareholders' meetings in up to seven months, counting from the end of the previous year;
Loss of effectiveness of contractual provisions that require the holding of shareholders' meetings before seven months, counting from the end of the year; and
Assembly or meeting of members with remote voting and participation of members.

Public Companies

Ordinary general meetings in up to seven months, counting from the end of the previous year;
Permission for the board of directors to resolve, ad referendum, on urgent matters of exclusive competence of the general meeting;
Allows the board of directors or the executive board to declare interim dividends;
General meetings by closed companies in which the shareholder can participate and vote from a distance;
CVM is responsible for authorizing, for public companies, a general meeting outside the company's headquarters and a remote meeting.


Validity

Like all Provisional Measures, MP 931 is valid for 60 days, as of its publication, with automatic extension for an equal period, if its voting has not been completed in the two Houses of Congress. That is, if Congress does not vote on the matter within 120 days, it loses effectiveness.



How DPC may help your company?

Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br

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Are you interested?

Please contact us, so we can understand your demand and offer the best solution for you and your company.

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