Lula announces BRL 10B for industries in Brazil’s Northeast

Industries wishing to invest in the Northeast will be able to access public funding. The government will allocate BRL 10 billion to strategic business plans. The announcement was made on Wednesday (May 28) by President Luiz Inácio Lula da Silva in Salgueiro, Pernambuco state, during an event to launch the public notice for the funding lines.

“There has never been such credit availability for the Northeast as there is now,” Lula said at the ceremony.

The funds will be available to cooperatives and to Brazilian and foreign companies with ongoing projects or plans for new investments in the region, with budgets exceeding BRL 10 million. Entrepreneurs seeking funding must submit their business plans by September 15 of this year.

“Proposals may include the installation of physical, research, or industrial infrastructure; the acquisition of machinery and equipment; the installation of pilot or demonstration plants; the hiring of human resources; funding for RD&I (Research, Development, and Innovation) activities—including the hiring of specialized technical services—and for RD&I projects carried out in partnership with other companies (including under an open innovation model), universities, and public or private research centers; engineering projects; and working capital,” the National Bank for Economic and Social Development (BNDES) said in a statement.

For BNDES President Aloizio Mercadante, investing in regional industrialization strengthens the national economy and fosters more balanced development by reducing inequalities. According to Mercadante, BNDES investments in the Northeast have increased year after year. “In 2024, we approved BRL 370.2 million for projects by companies in the region—an increase of 282.1 percent compared to 2023 and 579.1 percent compared to 2022,” he said.

In addition to BNDES, the call for proposals announced by Lula includes resources from the Financier of Studies and Projects (Finep) and public banks. Depending on the scope of the business plan, financing can be obtained through a special line of credit, equity participation by creditors, and economic subsidies (non-reimbursable funds).

The Superintendence for the Development of the Northeast and the Interstate Consortium for the Sustainable Development of the Northeast are providing technical assistance to business projects.