Government creates a guarantee trust for mypes for $5 million

The authorities of the National Commission for Small and Medium Enterprises (Conamype) and the Development Bank of El Salvador (Bandesal) yesterday signed the deed of constitution of the trust of the Guarantee Program for Micro and Small Enterprises (Progamype).

The trust is designed to support the sector, facilitating access to financing for those businesses that have difficulties in guaranteeing their requests for productive credits and will consist of $5 million managed through Bandesal and coming from the general budget.

The president of Conamype, Paul Steiner, said that financing is the most important element to ensure the growth of these businesses and that they go beyond subsistence production to wealth generation, thereby guaranteeing, at the same time, better conditions. of life for the rest of the population, which would be favored with an economic dynamic.

“Financial inclusion is the biggest problem, since 95% of these companies work as subsistence mypes and provide employment to 4.8 million salvadorans; So, to improve the living conditions of this entire population, these mypes must be empowered, and that requires financing,» Steiner said.

In this sense, he highlighted that the Progamype trust comes to target these businesses by reinforcing their growth plans through a guarantee that supports their requests for productive credits.

For his part, the president of Bandesal, Mario Salazar, indicated that the trust «was born in response to the lack of access to financing with banking institutions, mainly due to low ratings in credit bureaus,» a situation that is common for a sector that It has historically had to resort to usury to finance its productive activities.

On the other hand, the director of fund and risk management of Conamype, Raúl Castellón, announced two new lines of credit that the Government will make available, through the Fund for Entrepreneurship and Working Capital for Mype (Fecamype), in the next few months.

These are Accounts Receivable, a financial product through which a company guarantees its accounts receivable to a State entity up to 100% of the net value to be received for the service provided.

The second line of credit is Financing of State Suppliers, which is a credit for working capital and investment with which the firm award of a purchase contract with a State institution is sought.