With the severe economic impacts arising from COVID-19, the Federal Government has been working on the implementation of measures aiming to preserve the financial capacity of Brazilian companies.

In this context, Provisional Measure no 944, dated 04.20.2020, established the Emergency Employment Support Program, so that companies with gross revenues between BRL 360,000 and BRL 10 million receive financing to pay up to two (2) months of their payrolls, with a limitation of two (2) minimum salaries per employee.

With a broader scope, the National Economic and Social Development Bank (“BNDES”) announced the availability of three special credit lines:


Target Group: Companies with annual income between BRL 360K and BRL 10M.

Purpose(s): Exclusively to pay two (2) months of company’s payroll.

Conditions: (i) during the 2 months, company cannot dismiss employees with financed wages; (ii) financing limit is up to BRL 2,090.00 – two minimum wages – per employee; (iii) employees with wages ≤ BRL 2,090.00 shall receive the entire amount, without increment; (iv) employees with wages > BRL 2,090.00 shall receive the financing cap + balance according to the company’s cash availability; and (v) the program may be hired up to 06.30.2020.

To whom request: Financial institution responsible for processing the company’s payroll.

Interest Rate: 3.75% per year (pre-determined and exempted of remuneration to BNDES and banks).

Discharge Term: Up to 36 months (30 months for redemption + 6-month grace period).


Target Group: Legal entities that hold on their main or subsidiary CNAEs (National Economic Activities Classes): (i) assembly and provision of provisional emergency hospital beds for intensive care (71.1); (ii) provision of health services (86.1), with assembled capacity ≥ 100 beds; or (iii) production, import and/or sales of equipment, materials, supplies, components and/or products for health industry (26.6, 32.5, 32.9, 46.4 and 46.6). Companies and institutes that suit exceptionally their regular productive activities to provide hospital beds and health products (CNAE – Section C).

Purpose(s): To enable the enhancement of hospital beds provision, as well as acquisition of critical equipment, materials, supplies, components and products to meet assistance needs related to Covid-19.

Conditions: (i) The amount financed shall be used by the beneficiary within 6 months; (ii) Minimum financing amount = BRL 10M per operation; (iii) Financing Cap for Economic Group = BRL150M (for each 6 months); and (iv) The program may be hired up to 09.30.2020.

Whom to request: Directly to BNDES (after entitlement before the institution).

Interest Rate: TLP (IPCA + 1.98% per year) + BNDES charge (1% per year) + Credit Risk (up to 4.26% per year).

Discharge Term: Up to 60 months (including 3-24 months grace period).


Target Group: (i) Ordinary Beneficiaries: small companies, individual entrepreneurs and medium-sized companies with annual revenues up to BRL 90M; and (ii) Temporary Beneficiaries: medium-sized companies and economic groups with annual revenues up to BRL 300M.

Purpose(s): To assure business continuation, preservation and creation of job positions.

Conditions: (i) Financing cap per applicant: up to BRL 70M per year; (ii) Although the resources derive 100% from BNDES, credit analysis, deadlines, charges and guarantees of the operation will depend on negotiation with financial institutions; (iii) Temporary Beneficiaries may only hire this program up to 09.30.2020; (iv) After 09.30.2020, financing cap returns to R$ 10M per year.

To whom request: Small companies may send the request through MPME’s platform. The others shall look for one authorized financial institution of their choice.

Interest Rate: (TFB, TLC or Selic) + BNDES charge (1,25% per year) + Financial Institution Fees (determined in negotiation with the bank).

Discharge Term: Up to 5 years (including grace period up to 2 years).

In addition to the aforementioned credit lines, companies may request a 6-month interruption in the payment of interests and main debts to BNDES. This option is applicable for direct, indirect, automatic, non-automatic and conjugated operations. Interrupted installments will be capitalized in the unpaid balance, without changes in the agreement’s deadline.

The professional teams of Fraga, Bekierman & Cristiano Advogados are at your disposal to help with the requested legal clarifications.