Brazilian States Boost Small Business Growth Through Targeted Public Procurement and Exclusive Credit Lines in 2025
Paraná and Minas Gerais advance local economic development in 2025 by boosting public procurement from small businesses and offering exclusive credit lines with favorable terms.
- • Paraná spent over R$ 72 million on small businesses, with 70% from local suppliers across varied sectors including schools and healthcare.
- • The Programa Compras Regionais Paraná mandates favored treatment for small enterprises, allowing contracts even with prices up to 10% higher for local vendors.
- • Minas Gerais, via BDMG and Fecomércio-MG, launched a credit line offering 0.37% monthly interest plus Selic, with 24 months repayment and 90 days grace.
- • BDMG increased its financing in 2025 by 17%, supporting over 4,000 companies and emphasizing the role of small businesses generating most formal jobs in Minas Gerais.
Key details
In 2025, Brazilian states Paraná and Minas Gerais have implemented impactful initiatives to support small and micro businesses, emphasizing local economic development and access to affordable financing. Paraná's government purchased over R$ 72 million worth of goods and services from small businesses between January and September, with 70% (approximately R$ 50 million) spent on local suppliers, according to the state's Secretariat of Administration and Social Security. These acquisitions included food for schools, medical supplies, maintenance services, and more, highlighting the breadth of public procurement supporting small enterprises. Luizão Goulart, Paraná's state secretary of Administration and Social Security, emphasized the initiative's strategic economic value: "Valuing local producers is not just a matter of respect for those who live and produce in Paraná, but also a strategic action that promotes our economic strengths." This effort is part of the Programa Compras Regionais Paraná, established by Decree No. 5.833/2024, which provides favored and simplified treatment for small businesses, including allowing contracts with prices up to 10% higher than competitors if sourced locally.
Meanwhile, Minas Gerais launched a new exclusive credit line through the Banco de Desenvolvimento de Minas Gerais (BDMG) in partnership with Fecomércio-MG to provide micro and small businesses with financing at a minimum interest rate of 0.37% per month plus Selic. The 24-month repayment credit, which includes a 90-day grace period, can finance debt repayment, inventory expansion, renovations, and other business needs. Gabriel Viégas Neto, BDMG president, underscored the importance by noting small companies generate 70% of formal jobs in the state. Between January and September, BDMG has already released R$ 338 million in credit to over 4,000 companies, marking a 17% increase in financing. Fecomércio-MG President Nadim Elias Donato Filho pointed out the critical need for favorable credit access amid high interest rates.
Together, these state-level initiatives highlight a coordinated push within Brazil in 2025 to empower small businesses through strategic procurement and accessible financing, fostering local production and broadening economic opportunities for entrepreneurs.