Background on Projal and its Relevance
The Promotora del Financiamiento para el Desarrollo de Jalisco (Projal) is the only state development bank in Mexico, making it a crucial entity for fostering economic growth in the Jalisco region. Projal aims to collaborate with non-bank financial intermediaries, such as Sociedades Financieras de Objeto Múltiple (Sofomes), cajas populares, and uniones de crédito, to extend credit access to micro, small, and medium-sized enterprises (Mipymes) that typically struggle to secure financing from traditional banking institutions.
Projal’s Financing Strategy for Non-Bank Intermediaries
Projal has established a 100 million pesos funding line to empower these non-bank intermediaries. The goal is for them to triple this amount in credit offerings for local Mipymes, thereby significantly expanding financial coverage for small businesses.
Who Can Apply?
Sofomes, cajas populares, uniones de crédito, and other relevant non-bank financial intermediaries are encouraged to apply for this initiative. These institutions primarily serve Mipymes that conventional banking systems often overlook.
Financing Terms
- Projal offers preferential interest rates, ranging from TIIE (Interbank Interest Rate) plus 1 to 5 percentage points, translating to annual interest rates between 9% and 13%
- This is significantly lower than the current rates (24% to 30%) charged by traditional banks for Mipyme loans
- Projal also provides liquid first-loss guarantees to support high-risk sectors that both traditional banks and Sofomes typically avoid
Credit Distribution Requirements
Intermediaries must ensure that the credit they distribute, using Projal’s funding, reaches Jalisco-based Mipymes in need of productive loans for working capital, equipment, or infrastructure.
Credit Amounts and Terms
- Credit amounts range from 500,000 to five million pesos
- Loan terms extend up to 36 months
Estimated Impact and Application Process
Approximately 100 to 200 Mipymes are expected to benefit from this initiative, depending on the credit amount requested. Interested non-bank financial intermediaries should submit their applications via email to [email protected] by August 29th of this year.
Key Questions and Answers
- Who is Projal? Projal is the Promotora del Financiamiento para el Desarrollo de Jalisco, a unique state development bank in Mexico.
- What is the purpose of Projal’s initiative? To collaborate with non-bank financial intermediaries to extend credit access to Mipymes that traditionally struggle with securing financing from conventional banking institutions.
- What are the financing terms offered by Projal? Preferential interest rates (TIIE + 1 to 5 percentage points) and liquid first-loss guarantees for high-risk sectors.
- How can non-bank intermediaries participate? By applying with a request sent to [email protected] by August 29th, with credit amounts ranging from 500,000 to five million pesos and terms up to 36 months.
- How many Mipymes are expected to benefit? Approximately 100 to 200, depending on the credit amount requested.
