The US Finance Corporation for International Development (DFC) and Banco Sofisa announced (9) a five-year, $45 million loan program for small and medium-sized enterprises. The operation will have the partnership and institutional support of the US Agency for International Development (USAID) in Brazil. BH26, a financial advisory firm, was an advisor in this transaction.

Banco Sofisa will give priority to loans to SMEs operating in the Amazon with at least 30% of the loan proceeds to be allocated in the region. "DFC's loan to Banco Sofisa will expand access to capital for small and medium-sized companies across Brazil, with a focus on those operating in the Legal Amazon," said James Polan, vice president of DFC's Development Credit office. "Promoting financial inclusion for sub-banking communities will drive economic growth and development in Brazil," he concluded.

João Ceneviva, Treasurer of Sofisa, said: "We are honored to be part of this project in partnership with DFC and USAID to foster new business for small and medium-sized companies and support the growth of such an important region."

“The objective of this loan is to expand access to credit for SMEs, which generally have restricted access to capital in the northern region of Brazil. SMEs are important drivers of a diversified economy, necessary for sustainable economic development in the Amazon region,” said Ted. Gehr, USAID director in Brazil.

Promoting sustainable development and conservation of the Amazon's biodiversity is essential to combat deforestation and climate change. DFC, Banco Sofisa and USAID/Brasil are committed to strengthening this path and meeting the challenges of economic growth in the region. The partnership will provide local entrepreneurs with access to credit to build a new paradigm of economic development.

The announcement was made during an event for investors at Banco Sofisa's headquarters in São Paulo. The ceremony was also attended by US Consul General David Hodge.