Issue link: http://endeavor.uberflip.com/i/528453
The Development Bank of Minas Gerais (BDMG) is the largest regional development bank in the country, with more than R$ 4 billion financed. There are several credit lines dedicated to entre- preneurs, that can in turn use the website to do previous simulations based on their demands. It is especially worth mentioning some of the cred- it lines focused on innovation, which rely on the analysis of FAPEMIG (the foundation that support- ing state research) to allow the credit release. One of these credit lines is PROPTEC, intended only for the companies located in Technology Parks. Interested entrepreneurs create an applied research project to be financed, which is then an- alyzed by a committee established by BDMG and FAPEMIG. If approved, the credit (up to R$ 2 mil- lion) has a one-year grace period and up to five for full payment with an applied interest rate lower than 10.0% per year — for comparison purposes: the lowest BDMG traditional credit lines have 13.98% annual rates. tHE CItY's BEst praCtICE CasE In Belo Horizonte, local banks moved over R$ 700 billion in loans — among the highest proportional amounts where almost 55% of the popula- tion takes at least 30 minutes to and from work. Although the state capital has the 5th GDP in the country, between the years 2009 and 2011 (the last year with available data), the city's numbers for actual growth was only modest: 1.65% per year, the lowest rate in the Southeast and almost half the average 3.08% of the other 13 cities analyzed. This af - fects market conditions, especially for small businesses that depend on local growth, such as the commerce and service sectors. The cause for the city's GDPs low growth may also point to productivity challenges in these sectors, which had the lowest average value added to the GDP — about 40% below the average of the analyzed cities — and represents al - most 70% of total city's production. Belo Horizonte Southeast Best score for each pillar 5 4 6 7 8 9 65 Value Position Regulatory Enviornment 5.75 8 th Infrastructure 5.29 10 th Market Conditions 5.17 12 th Access to Capital 6.83 2 nd Innovation 6.72 4 th Human Capital 6.71 4 th Culture 5.67 9 th Regulatory Environment Culture Infrastructure Access to Capital Innovation Human Capital Market Conditions