Law No. 14,438 of 2022 was sanctioned last week, establishing the Digital Microcredit Simplification Program for Entrepreneurs (Digital SIM). The norm was approved as a conversion project, originating from MP 1.107/2022, which was voted on in the Senate in July.
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What is the Digital SIM?
The SIM Digital program was created with the aim of facilitating the acquisition of credit by minority entrepreneurs in the financial system and encouraging the formalization of small businesses.
Credit lines are available to individuals who carry out any type of productive activity or provision of services, whether in urban or rural areas, individually or collectively, or individual micro-entrepreneurs (MEIs).
Bill signed by the government
When converted into Law 14,438, the project changes the management and procedures for collecting monetary funds. Thus, some alterations and prioritizations in the text of the law are established.
Priorities of the text of the law
The agreement established by the document prioritizes the granting of microcredit to women, with the objective of reaching a proportion of at least half of the operations carried out in this category. The value of investments can be R$ 1,500 for individuals or R$ 4,500 for MEI.
Caixa Econômica Federal's Micro Finance Guarantee Fund (FGM) has guaranteed the loans, which may be offered by any bank with interest rates of up to 3.6% per month and a maximum payment period of 24 months.
In addition to all of this, the use of monetary resources set in the Severance Indemnity Fund (FGTS) was also authorized to reduce the operational risk of this transaction.
Many Brazilians will benefit from this proposal
The government anticipates its expectation that SIM Digital will help 4.5 million entrepreneurs in total. Yeah, there's no denying that the pandemic has increased unemployment rates and caused a significant increase in entrepreneurship. Thus, it is believed that it is the responsibility of the National Congress to facilitate this return in the economy.
