The development agencies are government institutions that serve to provide financial subsidies to micro, small and medium-sized companies. They can also provide lines of credit to municipal projects, as long as they are aimed at the interests of the citizen.
In addition to this financing, development agencies can also support liberal professionals and sectors of agribusiness, industry, technology, commerce and tourism. The attraction in this segment lies in the possibilities of repaying outstanding financing.
What this article covers:
What are funding agencies?
Development agencies act in financing projects or companies that are in need of financial support such as working capital or fixed capital. They can also provide financial support to municipalities that present projects that are to meet some demand, the population of the region.
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The possible beneficiaries of these agencies are projects that focus on infrastructure, micro-enterprises, small and medium-sized enterprises, family farming, self-employed professionals, industry, commerce, tourism and information technology. The Central Bank is responsible for supervising the activities.
What are funding agencies for?
Development agencies contribute with financial support, so that their borrowers can develop, thus positively affecting the economy of the region where they are located. After all, if the institution is functioning, it will move the wheels of the local economy: generating new jobs, strengthening the economy and increasing the circulation of resources.
And when it comes to funding investments for small and medium-sized companies, their chance to progress is greater, as many do not manage to pass their 5th year of entrepreneurship, due to the lack of adequate resources to guarantee their consolidation in the market.
How do funding agencies work?
Development agencies are registered as privately-held corporations, pursuant to legislation.
Source/Playback: original
As discussed earlier, in addition to offering lines of credit, development agencies can encourage municipal projects, as long as they are aimed at benefiting the population. For formalization, the term development agency must be present in the institution’s social name.
The guarantee to receive the contributions are hair, property, real estate and insurance. The interest charged is lower than that of a conventional bank and installment terms can be for a period of 10 years.
What are the development agencies in Brazil?
We found development agencies in the five regions of the country, each subsidizing some items, SEBRAE and BNDES join as participating agencies to generate promotion.
To get in touch with development agencies, you need to check which ones are present in your region:
North region:
- Amapá Development Agency: working capital, sustainability projects, microcredit.
- State of Amazonas Development Agency SA: working capital, sustainability projects, microcredit.
- Banco da Amazônia: working capital.
- Banco do Estado do Pará SA: agro, working capital, sustainability and innovation projects.
- Tocantins State Development Agency SA: working capital, sustainability projects.
Northeast Region:
- Agência de Fomento de Alagoas SA: working capital, financing for innovation, microcredit.
- State of Bahia SA Development Agency: working capital, innovation.
- Pernambuco Entrepreneurship Agency: financing for micro, small and medium-sized companies, microcredit, labor and services.
- Development Agency of the State of Rio Grande do Norte SA: working capital, sustainability projects, microcredit.
- Banco do Nordeste SA: working capital, sustainability and innovation projects.
Midwest region:
- Banco de BrasÃlia: working capital, microcredit, rural sector.
- State of Goiás Development Agency SA: working capital, solar energy, financing for innovation, machinery and equipment, rural sector, technology and tourism.
- Development Agency of the State of Mato Grosso SA: commercial, industrial, labor and services, solar energy, development of new products.
South region:
- Paraná State Development Agency SA: agribusiness, working capital, labor and services, machinery and equipment, microcredit.
- Development Agency of the State of Rio Grande do Sul: working capital, sustainability projects.
- Banco Regional de Desenvolvimento do Extremo Sul SA: working capital.
Southeast region:
- Development Bank of EspÃrito Santo SA: working capital, sustainability projects.
- Banco de Desenvolvimento de Minas Gerais SA: working capital, sustainability projects, exports, innovation, machinery and equipment.
- Agência de Fomento Paulista: acquisition of machinery, sustainability projects, financing for innovation and exports
- Finep (Financier of Studies and Projects), headquartered in Rio de Janeiro: working capital, sustainability projects, microcredit and innovation.
- State Development Agency, headquartered in Rio de Janeiro: working capital, sustainability projects, simplified credit (300,000.00 ceiling), growth and expansion, franchising and innovation.
- National Bank for Economic and Social Development (BNDES): working capital.
Now that you know more about the role of development agencies and how they help not only micro-entrepreneurs or self-employed professionals. Just check in your city if your business fits into any category and request assistance from a development agency, so that your business grows even more.
