Ricardo has been in the banking industry nearly all his life. His father, Flavio Pentagna Guimaraes operated Banco BMG for decades. He grew watching his father run the company to the best of his abilities. Ricardo’s father always wanted him to take over the family business.
Ricardo’s grandfather founded Banco de Credito Predial in 1930. In 1998, Ricardo joined the company and worked closely with his father. The bond that the Guimareas family shares with the financial sector run deep within their veins. When Ricardo took over the company, he led Banco BMG to the number provider of personal loans and payroll loans in the country. He ushered in a new platform the depended on lean structures that provided reduced interest and low defaults.
Just this past January, the Brazilian government announced that it would be offering R$8.2 billion in financing to small and micro enterprises. The government has set up a payout system that will be run by The Bank of Brazil and the National Bank for Economic and Social Development. These two institutions will have money available for loan in March. The program will then run for the next two years from the start date.
Vice President of Banco BMG, Marcio Alaor, has been reassuring the public that this decision comes at an amble time. Along with the loan program, there’s a second program being run with the hope of lessening the bureaucratic pitfalls that come with business management. The “More Simple Undertake: Less Bureaucracy, More Credit” program is planning to invest R$200 million into improving computerized systems that run that sector of the country.
The Brazilian Service of Support to Micro and Small Businesses (Sebrae) has released documents stating that the first models of the program should begin taking effect as early as February. These two programs are so detrimental to the country’s economy that the federal government isn’t the only institution promoting the benefits of these programs. Sebrae and Banco do Brasil are also promoting the programs.
The amount of troublesome paperwork Brazilian entrepreneurs face is ridiculous. These programs were designed to reduce bureaucracy. Along with lessening the paperwork-based problems, entrepreneurs will also have easier access to funding for business expansion. The end goal is to increase small and micro business success and rebuild the economy from the ground up rather than starting from the top and working downward.
The programs have also been designed to increase the number of jobs. Entrepreneurs will need to be able to pay back the loan with four years. Companies with ten or more employees must hire a young apprentice with six months of receiving the loan.