started · updated
Brazil's Lula government unveils extensive credit and financing reforms
President Luiz Inácio Lula da Silva presented a series of measures aimed at easing credit costs and expanding financing for small businesses and the agricultural sector. The government proposed raising the annual revenue ceiling for Micro‑Entrepreneur Individual (MEI) from the current R$ 81,000 to R$ 110,000 in 2027 and to R$ 140,000 in 2028, while also allowing MEIs to hire a second employee. A new phase of the “Desenrola” program – Desenrola Adimplentes – will offer low‑interest loans to consumers who keep their bills up to date but face high‑cost financing.
At the same time, the federal administration launched the 2026/2027 Plano Safra, allocating R$ 525.1 billion to the agribusiness sector. The plan increases credit for medium‑size producers, reduces maximum interest rates on strategic lines, and adds incentives for sustainable practices and environmental regularisation. Complementary actions include a R$ 550 million extraordinary diesel subsidy to curb transportation costs for agribusiness, and a structured credit facility for coffee‑farm mechanisation that provides up to R$ 300 thousand per producer.
These initiatives together target millions of informal workers, small‑enterprise owners and agricultural producers, seeking to stimulate growth, formalise employment and improve the competitiveness of Brazil’s key economic sectors.