Desenrola Brasil Extends Deadline and brings news for MEIs and small businesses

The program Unroll Brazil, which focuses on helping Brazilian citizens with debt renegotiation, has been extended until May 20th. This extension of the deadline will be especially beneficial for those registered with Track 1aimed at individuals with a monthly income of up to two minimum wages and registered with CadÚnico, in addition to opening new doors for MEI and small businesses.

Why was Desenrola Brasil extended?

The extension of the Unroll Brazil It is a government strategy to strengthen support for low-income families in an economically uncertain time. With this measure, the government hopes to not only facilitate debt renegotiation, but also boost the economy by increasing the purchasing power of families most affected by the economic crisis.

Who benefits from Desenrola Brasil?

• Individuals with an income of up to two minimum wages.

• Individual Microentrepreneurs (MEI) and small businesses, through program extensions.

What is the Unwind small business extension of Desenrola Brasil?

O Develop Small Businesses is a new aspect of the program designed to offer specific support to micro and small businesses with financial debts. This segment of the program facilitates negotiation directly with banks and other financial institutions, without intermediaries, covering debts that are overdue for more than 90 days.

Desenrola Pequenos Negócios Target Audience Profile:

• Microenterprises (MEs) and Small Businesses (EPPs).

• Annual revenue of up to R$4.8 million.

How does the Renegotiation process work?

To participate, companies must want to renegotiate debts that are overdue for more than 90 days. Once confirmed that they fit the program criteria, entrepreneurs can follow these steps:

• Identify your company’s eligibility according to allowed revenue.

• Check the age of the debt (more than 90 days late).

• Contact the bank or financial institution holding the debt.

• Negotiate debt terms considering the benefits of the program.

Impact of Desenrola Pequenos Negócios on the Economy

It is anticipated that the implementation of the Develop Small Businesses will generate significant impacts on the national economy, especially in support of small businesses that have been disproportionately impacted by recent economic challenges, including the COVID-19 pandemic. Debt discounts can range from 40% to 90%, depending on the negotiation, which represents a great opportunity for indebted companies to recover financially.

In addition to Desenrola Pequenos Negócios, the government has expanded the reach of programs such as Pronampe and the Believe in your Businesswhich offer credit with reduced interest rates, aiming to stimulate the recovery and growth of these businesses post-crisis.