» Purposes

Strengthen the equity structure of credit unions by granting loans directly to union members. 


» Clients

Union members who are self-employed natural persons, such as farmers, fishermen, businessmen, service providers and small entrepreneurs; and 

Union members who are legal entities working in rural, fishing or industrial activities, commerce and services. 


» Financeable items

Acquisition of shares of small-sized credit unions which have operated for more than one (1) year. 

Notes:

The credit union member must contract the loan directly, and the funds must be immediately transferred to the credit union that issues the financed shares. Then, the credit union must record the payment on behalf of the credit union member;

The shares acquired must remain integrated to the capital of the credit union which issued the shares until the respective credit transaction is settled;

All funds the credit union receives may be used freely, provided that this use complies with the specific regulation that governs the sector, except for the purposes of paying expenses, which must be restricted to the provision of qualification training courses to credit union managers or staff employees and the implementation and improvement of operational, managerial and control systems. 

 

» Interest Rate 

Financial Cost + BNDES Spread + Accredited Financial Institution Spread. 

Financial Cost: Taxa de Juros de Longo Prazo – TJLP; 
BNDES Spread: 1% per annum; 
Accredited Financial Institution Spread: up to 3% per annum. 


» Share Level

Up to 100% of the share acquisition amount, taking into account the following limits: 
Client: up to R$ 10 thousand, regardless of credits obtained in other official programs; 
Small-sized Credit Union: the total sum of basic amounts granted to each credit union, referring to loan balances “to be” granted to these members, must not exceed 100% of the credit union Reference Equity (PR). 


» Maturities

The operation maturity must expire within 72 months, including the 12 months of grace period. 


» Collateral

At the Accredited Financial Institution discretion and in compliance with the Brazilian Central Bank standards.

The pledge of credit rights from financial investments will not be allowed as a collateral.


» Special Conditions

Forecast of funds required by PROCAPCRED, forecast of union’s new equity structure and evolution of members and services in the respective operational segment; 
Economic and financial forecasts containing the destination of funds obtained with the capitalization plan, the impacts on operational levels, income and other benefits granted to the members; 

Measures intended to improve the technical qualification level of union directors, managers and employees, as well as the quality of managerial standards and internal control systems; 

Commitment undertaken by the central credit union, or other accredited financial institution, ensuring the measures contained in the project will be followed when implemented and annually reported for purposes of presenting evidence to the said Financial Institution, in order to keep on disbursing new loans or installments. 


» Effectiveness

Up to 12/31/2009, complying with the budget limit allowed to the Program.


» Addressing

Applicants must contact an accredited financial institution, in order to gather information on the documentation needed to the operation, which must analyze the possibility of granting the credit and negotiate the collaterals. After the approval by the financial institution, the operation will be sent to final sign off so as BNDES may disburse the funds.