Government Loan for MEI: learn more

Have you ever heard of government loans for MEI? With increasing competition in the market for conventional workers, the number of people seeking to run their own business has grown increasingly.

With the number of individual microentrepreneurs (MEI) increasing, banks and financial institutions are increasingly aware of the importance of offering credit options so that these individuals can invest in their businesses.

What is MEI?

MEI stands for Individual Microentrepreneur. MEI is a simplified business model for self-employed individuals.

By becoming an MEI, the self-employed worker gains registration in the National Registry of Legal Entities (CNPJ) and is automatically classified under a simplified model of the Simples Nacional.

Who can be a MEI?

In order to formalize yourself as an individual microentrepreneur, you must meet certain requirements, such as:

– Not be a partner, administrator or owner of another company;
– Have a maximum of 1 employee hired;
– Have an annual turnover of up to R$ 81 thousand or proportional to the months worked;
– Carry out one of the permitted activities;

Among the permitted activities, the most common are:

hairdresser, manicurist and pedicurist;
retail sale of clothing and accessories;
sales promotion; snack bars and similar;
general merchandise trade – such as minimarkets and grocery stores;
aesthetic activities and beauty care services;
electrical installation and maintenance services, among others.

An increasingly common practice is for CLT workers to have an MEI registration to carry out parallel activities.

This is a viable option for those looking for extra income.

However, if these professionals are fired, they lose their unemployment insurance, as the government understands that the worker already has a source of income.

What are the advantages of MEI?

When formalizing as an individual microentrepreneur, self-employment guarantees certain rights, such as:

– Retirement – whether due to age or disability;
– Sickness benefit;
– Maternity leave;
– Survivor’s pension for dependents;
– Hire up to 1 employee;
– Open a legal account and secure exclusive loans for MEIs;

What is the maximum loan amount for MEI?

This amount can vary significantly from bank to bank. The entrepreneur's established profile and their relationship with the institution can help.

But, on average, the credit offered to MEIs does not usually exceed the range of R$ 20 thousand.

Which institution to choose?

With increasing incentives, MEIs may have many doubts before choosing a line of credit among all the options available on the market.

Here, we have separated four options special loans for individual microentrepreneurs. They are:

Bank of Brazil

At Banco do Brasil, MEIs can find the Oriented Productive Microcredit (MPO) option.

In this model, the loan amount and repayment term are determined based on the entrepreneur's ability to pay. Furthermore, the repayment term ranges from 5 to 18 installments.

Some of the conditions to be able to contract this line of credit are being a Banco do Brasil account holder and being an individual microentrepreneur with a turnover of up to R$1,040,000 per year.

The customer also goes through a registration and credit analysis to be approved.

Box

The result of a partnership between Caixa and SEBRAE, in this option, operating conditions vary taking into account the size and classification of the company.

For MEIs, the maximum amount available per CNPJ is R$12.5 thousand, with a payment term of 24 months and an interest rate of R$1.591 per month.

To access this line of credit, the applicant's CNPJ must have at least 12 months of billing, not have any CPF or CNPJ restrictions, and undergo an analysis carried out by Caixa.

People's Bank of São Paulo

This microcredit program, which was developed by the Government of the State of São Paulo, aims to encourage entrepreneurship and contribute to the generation of new businesses.

In this program, the MEI can have access to a credit line of R$$ 200 to R$$ 21 thousand.

Additionally, the loan interest rate is 0.35% to 0.8% per month (depending on the company profile), with a repayment term of 36 months.

Pronampe

And last but not least, we have the National Support Program for Micro and Small Businesses.

Pronampe is a program that offers loans to small businesses with lower interest rates and a longer repayment period.

This program is relatively new, having been created in 2020, in the midst of the COVID-19 pandemic.

The main objective of its creation was to help entrepreneurs face the economic crisis caused by the coronavirus.

The money requested can be used for several purposes: from making investments (such as renovations and equipment purchases) to paying operating expenses (such as purchasing merchandise and paying salaries and bills)

Payment can be made in up to 48 installments, and the deadline to start paying is 11 months after receiving the credit.

Conclusion

As you can see, there are several loan options for MEIs who want to get their business off the ground!

If you, like millions of Brazilians, are looking to obtain this type of loan, the first step is to do your research when choosing a financial institution.

Only then will you find an option that fits perfectly into your financial planning.

Furthermore, another factor that requires a lot of attention is the conditions offered by each institution.

Keep an eye on the different terms, payment conditions, and interest rates applied, as some items may vary depending on the needs and profile of each microentrepreneur.

This way, you'll be able to close the most advantageous deal for you, your company, and your wallet.

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Nathalia P. Silva 5 de October de 2021