Mexico’s small business owners are set to receive new funding opportunities from the government, following an announcement during Andres Manuel Lopez Obrador’s morning press conference earlier this week.
A budget of 6 billion pesos (US$316,000) has been allocated for the new entrepreneurial lending project, which aims to release the funding in batches. Business owners will be expected to pay back the loan over a period of time, however.
The statement, made on Tuesday in Izatapalapa before being reiterated on Wednesday, is aimed at providing better funding opportunities for small traders and entrepreneurs, owners of stores and workshops, as well as people living in mining areas, reported Mexican financial outlet, El Economista.
“We are going to start a program called ‘Tandas para el Bienestar.’ The one who has a small business, a ‘little shop’, a workshop, and who needs a loan will receive that credit to the word and without interest,” the President explained.
Some one million small businesses and entrepreneurs are set to benefit from the interest-free yearly loan of up to 6,000 pesos (US$317), the President continued, and repayments of 500 pesos ($US26) monthly will be requested after a three month period.
The new initiative adds to another method of Andres Manuel Lopez Obrador’s fight against Mexico’s ongoing corruption concerns. As well as the fuel redirection processes, which are now in their second week and continue to cause fuel shortages around the country, the allocated loans and strengthened financial support for local businesses will reduce the likelihood of entrepreneurs seeking funding from other players.
“Everything we save from avoid[ing] that robbery, to avoid the huachicoleo, where will that money go?” he asked, before pointing out that savings will lead to many more such investments that benefit local Mexicans.
The funding is anticipated to benefit a variety of workers from young people and students to seniors, the report continues. Funded by the Ministry of Economy, businesses will also be able to re-apply for a second loan once their repayments have been completed in the first yearly period.
Further welfare initiatives have already been launched by the Mexican government, who earlier this week announced plans to introduce a wider national pension plan which will provide 2,550 pesos (US$133) to Mexicans over the age of 68 every two months. Children and young people with disabilities are also expected to receive benefits from improved welfare support from the government.