On March 25, the Ministry of Economy issued Resolution No. 124-2020-EF/15 adopting the Operational Regulations for the Business Support Fund for micro and small enterprises. The measure establishes the regulations, terms, conditions and complementary rules necessary to ensure the proper functioning of the Fund and is already in force.
The aim of the Executive Branch is to promote the financing of micro and small enterprises (MSMEs), through credits for working capital, as well as to restructure and refinance their debts, in order to help them stay in business due to the impact of the COVID-19 on the national economy.
The Business Support Fund of 300 million Peruvian soles (S/) will be transferred by the General Directorate of the Public Treasury to the Development Finance Corporation (Cofide, in Spanish). The fund will only be accessible to MSMEs working in a business segment related to production, tourism, trade or related services.
The resolution states that a maximum value of coverage will be given, to be applied in the following scale:
- Total amount of credit granted in the financial system to a MSME of up to S/30,000, with 70% coverage per debtor.
- Total amount of credit granted in the financial system to a MSME from S/30,001 to S/60,000, with 50% coverage per debtor.
- Total amount of credit granted in the financial system to a MSME from S/60,001 to S/90,000, with 30% coverage per debtor.