TozziniFreire Advised Sistema B on the financial regulatory aspects, and the fintech and lending transactions legal aspects.
To help Small businesses hit by the novel coronavirus, the global movements Sistema B (dedicated to the strengthening and growth of the global movement of B Corporation) in Brazil and Capitalismo Consciente, along with Din4mo and Trê Investindo com Causa, established CoVida20: a lending program that will offer loans with lower interest rates, extended terms and grace period for payment to companies engaged with impact businesses.
The lending transactions will be carried out through an online platform developed by Mova Sociedade de Empréstimo entre Pessoas S.A. (Mova), a financial institution authorized by Central Bank of Brazil to use electronic platforms to match creditors and borrowers (peer-to-peer lending). Trê will provide correspondent banking services to Mova by, among others, offering, receiving and forwarding loan or credit transaction proposals that will be analyzed by Mova and granted under the CoVida20 program.
In the first round, the expectation is to raise R$ 15 million (fifteen million Brazilian reais). Companies with up to R$ 10 million (ten million Brazilian reais) annual revenue may apply for financing. Businesses with revenues between R$ 360,000 (three hundred and sixty thousand Brazilian reais) and R$ 5 million (five million Brazilian reais) per year will have priority. The financing conditions will vary, with a maximum term of 60 (sixty) months, a grace period of up to 12 (twelve) months and an interest rate of up to 0.5% (zero point five per cent) per month.
The expectation is to run up to four financing rounds.
Sistema B, Capitalismo Consciente, Din4mo, and Trê conceived the initiative with the support of Gerdau, Movida, Grupo Gaia, Sitawi, ICE, Wright Capital, Wazo, Aquatro Cultura de Impacto, YUNUS Social Business, Kria, Impact Hub, CITIES CAN B, Tatil, Não Demita, Humanizadas, Parsifal21, CEBDS, Fundación Avina, BemTeVi Investimento Social, Quintessa, Vox Capital, Positive Ventures, ARTEMISIA, CAUSE and Pipe Social.
TozziniFreire advised Sistema B pro bono with a team including Alexei Bonamin (Picture), Marcus Fonseca and Natasha Wiedmann.
Law Firms: Tozzini Freire ;
Clients: Sistema B;