Note

April 27, 20 - 11:53 am - LABS

IDB and Business Council will assist 30,000 small and medium firms in Mexico

With backing from the Mexican federal government, IDB Invest and the Mexican Business Council (CMN) will start a loan program for 30,000 micro, small and medium-sized enterprises (MSMEs) in the country during the COVID-19 pandemic.

The Ministry of Finance will support these loans for up to $12 billion to support production chains, especially small businesses, so the IDB and CMN asked local and international funders to also participate in.

According to Milenio, small and medium enterprises consist of approximately 4.1 million economic units in Mexico; they contribute 42% of the Gross Domestic Product (GDP) and generate 78% of employment in the country. However, only 23% obtain financing from commercial banks.