EMBRAPII and FINEP close an agreement of R$300 million

Companies will be able to use the resources for research, development and innovation projects in partnership with EMBRAPII Units

 

In order to strengthen support for Brazilian innovation and speed up the offer of credit to the productive sector, EMBRAPII (Empresa Brasileira de Pesquisa e Inovação Industrial) and Finep (Financier of Studies and Projects) signed, on December 21, an agreement that reserves R$ 300 million to RD&I – Research, Development and Innovation projects carried out in partnership with the EMBRAPII units. The signing took place at the Regional Office of the Presidency of the Republic, in São Paulo, and was attended by the Minister of Science, Technology, Innovation and Communications (MCTIC), Gilberto Kassab.

 

The funds will be made available by Finep, through the granting of long-term loans and low interest, to companies that need capital to comply with the legal requirement of the EMBRAPII financing model. In this model, the financing is divided into three parts, one of which is paid by EMBRAPII, another by the EMBRAPII Unit responsible for developing the project and the last part is paid by the company. 

 

The CEO of EMBRAPII, Jorge Guimarães, explains that the accredited Units identified very good RD&I projects, with good market prospects, but which ended up not being executed, even with EMBRAPII's subsidy. “EMBRAPII finances 1/3 of the project with non-reimbursable resources, but even so, many ideas are not put into practice due to lack of capital. Entrepreneurs often do not have the amount needed to finance their part of the project. Now, we are offering an incentive to enable the execution of the idea”, he comments.

 

The cooperation agreement also creates a fast-track for projects that have already been analyzed by EMBRAPII units and that have already demonstrated a high innovative potential. In just 30 days, entrepreneurs will have an answer about access to finance. Another benefit foreseen in the document is the creation of a specific communication channel so that the EMBRAPII Units can present project proposals in partnership with companies that fit the terms of the agreement. 

 

The cooperation provides that companies from all sectors can apply for funding from Finep, as long as they present a product, process or service innovation project in EMBRAPII's areas of activity, such as: biotechnology, agribusiness, engineering, electronics, Information and Communication Technology – ICT, among others.

 

EMBRAPII operates through cooperation with public or private scientific and technological research institutions (Units) in various regions of the country. EMBRAPII offers non-reimbursable financial resources for the implementation of RD&I projects in partnership with companies. The financial support for the projects is given by the subsidy of up to 1/3 of the expenses of the approved projects, while the rest of the amount will be divided between the partner company and the Unit. Currently, there are 42 Units and operation.