Previous consultations are the first step for businessmen to obtain financing with BNDES. The previous consultation specifies the company and endeavor's basic characteristics, necessary for the operation's eligibility into BNDES Operating Policies. The financing requests, since the incoming of a request until the contracting for release of funds, have maximum running deadlines.




Previous Consultation

Requests for support, under direct, non-automatic indirect and mixed forms, are addressed to BNDES by means of a previous consultation - filled out in accordance with the directions of the Guide on Information for Previous Consulting - sent by the company interested or by means of the accredited financial institution.

The Department of Priorities [DEPRI], of the Planning Area, is responsible for receiving the request for support, recording its receipt and checking the request's adequacy to the priorities established based on directions approved by BNDES Board, substantiated on the Operating Policies. Copies of previous consultations are addressed to the Credit Area and the Operating Area responsible for the economic sector related to the project (Industrial, Basic Inputs, Infrastructure, Foreign Trade and Social Inclusion). 


Perspective

When an operation is filed with BNDES not including the information necessary for the Eligibility analysis, namely those included in the Guide on Information for Previous Consulting, this operation is registered at a Perspective level. The dossier for such operations is characterized as a "letter of intention", instead of a "Previous Consultation". 

In case the company does not present the missing information within the deadline established, the request of funds will be cancelled by BNDES, but this does not preclude the company from making a new request afterwards. 


Eligibility

In this phase a pre-evaluation is made for the capacity and funding of a counterpart from own resources and the company to execute the project. This includes its management capacity, market insertion and the accomplishment to environmental standards, classification of credit risk for the company or the Economic Group, its business data classification, among other aspects. The Planning, Credit and Operations Areas participate to this phase.

The Credit Area defines the classification of risk for the company or Economic Group, based on the analysis of Financial Statements and other financial information addressed to the company and submits them to the appreciation of the Eligibility and Credit Committee.

The Department of Priorities [DEPRI], jointly with the Operating Areas and having the risk classification of the company or Economic Group, prepares the Eligibility Instruction, recommending or rejecting the support, for presentation to the Eligibility and Credit Committee. 

The Eligibility and Credit Committee reviews the requests included in the eligibility instructions, ratifying or rejecting the recommendation from the Department of Priorities [DEPRI], as well as the risk classifications defined by the Credit Area. Subsequently, it submits the proposed credit limits to approval of the Board, which reviews them at weekly meetings. 

Correspondences are sent informing the client about the Eligibility and Credit Committee's decision. In case of indirect operation, the communication is addressed to the financial institution that directed the consultation, and also to its client. In case of approval, the Eligibility Letter indicates the BNDES Operating Department that will be responsible for analyzing and structuring the operation.

The Department of Priorities [DEPRI] has a deadline of 30 days, from the date the financial cooperation request is received, to direct its recommendations to the Eligibility and Credit Committee. This deadline is considered from the entry of complete information, in accordance with the directions contained in the Eligibility Information Guide. The same deadline should be observed in cases of indirect operations.


Project Presentation

For direct modality, in which the operation is negotiated between the client and BNDES, after receiving the letter informing the eligibility, the enterprise gets in touch with the Operating Department indicated. It prepares the information and the documentation under supervision of the Department Head and in accordance with the Guide on Information for Project Presentation, forwards it to the Bank.

The enterprise should present the project, as well as the documentation necessary for analysis of the operation within 60 days, counted from the date of notification of the eligibility, extendable for one or more times, at discretion of BNDES. In case of indirect operation, the accredited financial institution should present a project within the same time.


Project Analysis

Within 60 days, counted from the date of notification of the eligibility, extendable for one or more times, at discretion of BNDES, an analysis of the project is prepared. The deadlines for Presentation and Analysis of the Project, including its eventual extensions, totalized, should follow the limit of 210 days, counted from the date of notification of the operation's eligibility to the client.

Since this phase is completed, a Project Analysis Report is forwarded to be reviewed by the Operational Area Director, which submits it to approval by BNDES Board at the weekly meetings. In case the operation is forwarded by an accredited financial institution, the Operational Area will process a new analysis of the operation and subsequently submits it, like in direct operations, to the decision of a committee of directors.

After the operation is approved by BNDES Board, the requirements for contracting the operation are informed by letter to the enterprise or, if it is the case, to the accredited financial institution.


Contracting

Since the necessary documentation is received, and all approved conditions are met, a contractual instrument is prepared, which is signed by the parties and taken to the due registrations.

Contracting of the operation should be made within 60 days, counted from the date of the approval notification, extendable for up to 120 days, at BNDES discretion. In case of an indirect operation, the accredited financial institution should sign the contractual instrument within this same deadline. After 180 days are elapsed, and the contract is not made, the operation should be cancelled.

Elapsed the initial time of 60 days, and the operation is not contracted, a Credit Reserve Charge will be due. In case of direct or indirect public administration, the time will be counted from the date of authorization by Secretaria do Tesouro Nacional [STN].


Disbursements

Once the records are made and the previous conditions for fund disbursements are met, the first release of funds will be made in accordance with the agreement's provisions. A subsequent release will not take place if the previous is not completed and confirmed. Once the physical implementation is completed, the Project Completion Report is prepared, and from then on a monitoring of the financing repayments takes place. During the whole effectiveness of the project, a monitoring of the economic and financial situation of the company and the Economic Group is performed.