Published legislation and draft legislation - Colombia

Guarantee scheme for MSMEs

External Regulatory Circular 023/ 2017

This special guarantee scheme enables micro, small and medium-sized companies (MSMEs) to access loans backed by the National Guarantee Fund (FNG in the Spanish), subsidizing the fee they would otherwise be charged, which is paid by the Bogotá district government.

The Bogotá Microcredit Scheme works as follows:

  • Program’s total endowment: USD 491,000
  • Eligible beneficiaries and economic sectors: micro-enterprises (natural or legal persons) active in any sector of the economy apart from the primary agricultural sector, with total assets of not more than USD 133,000
  • Use of credit: working capital and/or acquisition of fixed assets
  • Maximum guarantee: loans of up to USD 6,600 extended to each debtor by a financial intermediary
  • Credit term: up to 24 months
  • FNG cover: 70% of the outstanding balance of the loan capital

The deadline for reserving sums for transactions eligible for these guarantee products is 31 October 2018 or until the endowment allocated for this program is fully reserved, whichever is the sooner.