MP 944 brings rules for granting credit to companies for payment of wages

The resources for the Program, as well as the risks of default and possible financial losses, will be supported in the proportion of 15%.

Last Friday, April 3, 2020, Provisional Measure 944 was published, which instituted the “Emergency Employment Support Program”, with the objective of carrying out credit operations for the payment of employees’ payroll, maintained in a financial institution participating in the Program, by entrepreneurs, business companies and cooperative societies, which have annual gross revenue, calculated based on fiscal year 2019, between 360 thousand reais and 10 million reais, excluding credit companies.

The resources for the Program, as well as the risks of defaults and eventual financial losses, will be supported in the proportion of 15% with own resources from participating financial institutions and 85% with resources from the Federal Government, which transferred 34 billion to BNDES, as a financial agent. of reais for the execution of the Program.

Its operation will be supervised by the Central Bank with regard to the compliance by financial institutions of the conditions established for these credit operations, with the National Monetary Council and the Central Bank itself, within the limits of its competences, disciplining aspects necessary to operationalize the Program and to carry out the inspection regarding the provisions of the MP.

The credit lines, granted under this Program, will be destined exclusively to the processing of the payrolls of the contracting company, for a period of two months, limited to the amount corresponding to up to twice the minimum wage per employee, with the requirement that these legal entities assume contractually the obligations to provide truthful information, do not use the resources for different purposes and do not terminate, without just cause, the employment contracts for a period that includes the contracting of the credit line up to 60 days after the receipt of the last installment , under penalty of early maturity of the debt.

All financial institutions subject to the supervision of the Central Bank will be able to participate in the Program, ensuring that the funds are used exclusively for the payment of the payroll of the contracting companies, observing their own credit policies, with the authorization to consider restrictions that may exist in systems for protection of credit on the contracting date and default records in the credit information system maintained by the Central Bank in the six months prior to contracting, with the possibility of these credit operations being formalized by June 30, 2020, stipulating an interest rate of 3.75 % per annum on the amount granted, 36 months for payment and a grace period of six months for the beginning of the payment, with interest capitalization in that period.

In the event of default by the contracting legal entity, financial institutions will charge, in their own name, in accordance with their policies, bearing all the expenses necessary for the recovery of credits, and the adoption of less stringent procedures than those usually prohibited employees in their own credit operations, also being responsible for the veracity of the information provided and the accuracy of the amounts that must be reimbursed to the Union, through the BNDES, with the application of the Selic rate and an interest rate of 3.75% per year.

The private and public state financial institutions participating in the Program are exempted from carrying out prior consultation with CADIN (art. 6, Law 10.522 / 2002) and requiring, among others, contracting companies, in general, the discharge certificate referring to the Annual Relations of Employees – RAIS – (art. 362, § 1, CLT), FGTS Certificate of Good Standing (art. 27, caput, “b” and “c”, Law 8,036 / 1990; art. 1, Law 9,012 / 1995) and Negative Debt Certificate – CND – (art. 47, caput, I, “a”, Law 8,212 / 1991; art. 10, Law 8,870 / 1994) and those who work in sectors associated with agribusiness, proof of payment of ITR, relative to the rural property, corresponding to the last five fiscal years (art. 20, Law 9.393 / 1996), emphasizing that federal public financial institutions may adopt the waiver of documentation, observing the provisions of the Budgetary Law of 2020 (Law 13,898 / 2019).

By: Wilson Sales Belchior