The rise in interest rates, driven by the BCentral bank of the Argentine Republic (BCRA) from 2022, meant in practice generating higher costs for those companies that require credit to develop their activities, whether in the form of financing for investment projects or mere working capital.
In this context, it is appropriate to review with what programs to finance themselves have the “MIPyMES” and what are their general characteristics to be able to access them.
Banco Nación offers loans of up to $1 million with a rate of 40%: who can request it?
Argentine Entrepreneurship Program
It is a credit line implemented by the Secretariat of Industry and Productive Development of the Nation.
Consists in loans in pesos of between $10 and $50 million for 80% of the total cost of the project, still 5 year term already one fixed interest rate of 25% TNA. it is aimed at MiPyMEs with up to 7 years old that work in one of the following priority strategic sectors: green economy, health, sustainable mobility, defense and security, food production, digitization, medical cannabis and industrial hemp, mining value chain, and oil and gas value chain.
This second call for the presentation of projects closes on April 14. The presentations are made via the TAD platform.
National Program for the Development of Industrial Parks
As will be recalled, the initiative in question was instituted by Decree 716/2020 and is multi-year in nature.
Its purpose is to promote the creation and development of said parks, both public and private, as well as financing the establishment and expansion in them of private sector companies. Recently, through Administrative Decision 122/2023, the Chief of the Cabinet of Ministers allocated an amount of $2,200 million to the Program’s budget for this year.
5 characteristics of CreAr credits for SMEs and large firms
The initiative contemplates the granting of ANRs (up to $170 million per benefit) and credits with an interest rate bonus to finance studies and works by the parks themselves. In addition to loans with interest rate discounts for companies of all sizes interested in settling in a park through the purchase of lots or investing in equipment and/or construction. The aforementioned loans are granted for a 5-year term and at financial costs below those prevailing in the market.
The Application Authority is the Secretariat of Industry and Productive Development of the Nation. The presentations are made via the TAD platform.
Line of financing for the productive investment of “MIPyMES”
The BCRA established the 2023 quota for this line, under conditions similar to those already in force. Said quota will be open between April 1 and September 30. The loans in pesos for investment will pay a fixed rate of 64.50% TNA for a total term of not less than 36 monthss, while those destined for working capital will have a fixed rate of 74.50%, with no minimum term required.
It is remembered that pBoth MiPyMEs and large companies can access the Line use the funds to purchase machinery and equipment produced by local MSMEs.
All these programs aim, in a certain way, to solve the shortage of financing of investment projects through bank financing, being a clear opportunity for MiPyMEs to review the menu of these available options and see which one is more or less appropriate. to apply to your investment projects; also evaluating the convenience or not depending on the particular conditions of that project and the business.
* Silvia Tedin (Partner) and Ricardo Proganó (Corporate Finance Director) of San Martín, Suarez y Asociados (SMS) Buenos Aires
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