Brazil Sets R$500 Million Emergency Credit Line for Calamity-Hit Municipalities

Overview

• Banco do Brasil and Caixa will operate the line, with applications accepted through July 4, 2026.
• Resources come from the Social Fund surplus, with R$300 million for working capital and R$200 million for reconstruction and equipment.
• Eligible borrowers include companies based in recognized disaster areas, individual entrepreneurs, and residents working in agriculture, forestry, fishing or aquaculture, with proof of location and a signed loss declaration required.
• Financial terms include a bank spread of up to 4% per year, a Social Fund rate of 2%–6% for working capital based on size and income, and 1% for reconstruction and equipment, with up to 60 months for working capital and 120 months for reconstruction, both with 12 months’ grace.
• Loan caps range from up to R$200,000 for qualifying individuals to R$500,000 for micro and small firms, up to R$5 million for companies with revenue to R$300 million, and up to R$10 million for working capital or R$50 million for reconstruction and equipment for larger firms, with conditional refinancing permitted for debts contracted after the disaster.