Brazil Allocates R$101 Million in Credit to Empower Female Entrepreneurs

In a significant boost to female entrepreneurship in Brazil, the Impact Fund Estímulo announced a dedicated credit allocation of R$101 million for women entrepreneurs as part of a larger R$400 million initiative to support micro and small businesses nationwide. This program has already benefited 1,600 micro and small female entrepreneurs, with 88% of the financing reaching women from low-income backgrounds, including one-third who had never accessed formal credit before.

Lucas Conrado, executive director of Estímulo, highlighted that women demonstrate 26% lower default rates compared to men and contribute substantially to society, especially through investing in their children's education. The fund's blended finance model facilitates access to credit without requiring real guarantees such as property or vehicles, offering attractive monthly interest rates between 1.99% and 2.99%. Repayment terms include up to two months of grace period and fixed installments over 24 months, with digitally processed applications ensuring funds reach entrepreneurs within five days.

Among the success stories is Rita de Cássia, a Fortaleza-based clothing entrepreneur, who secured R$131,000 credit from Estímulo to expand her business. Despite pandemic challenges, Rita adapted her operations for digital sales and wholesale, currently generating between R$140,000 and R$160,000 monthly. The program also provides training opportunities, with nearly 40% of trainees being women. Leading companies such as Itaú, Vale, BTG Pactual, and Google support this initiative, reflecting a strong collaborative effort to empower female-led enterprises in critical sectors including Food, Health & Beauty, and Clothing.

This landmark effort not only addresses financial barriers but also aims to foster inclusive economic growth by enabling a segment of entrepreneurs who traditionally face challenges accessing credit and business development resources.