·         Initiative will provide exporting or export-oriented SMEs in the agricultural, food, industrial and service sectors a series of tools.

• Financial resources provided by PROCOMER and the Development Banking System.

• INA will hire a group of business and financial consultants to accompany the chosen companies for a duration of 12 months in their transformation towards the new post-COVID-19 reality.

San Jose, April 17, 2020. Costa Rican micro, small and medium-sized companies in the agricultural, food, industrial and services sectors affected by the global crisis as a result of Covid-19 will have the opportunity to continue developing their operations.

The Relief Program, an interagency effort brought about by the Costa Rican Foreign Trade Promoter (PROCOMER), the Development Banking System (SBD) and the National Learning Institute (INA), seeks to mitigate the negative impact  the pandemic will have on our economy.

The Relief Program is a platform that will provide 200 companies with a series of tools chosen by the three institutions participating in this initiative, the same institutions who have come together to offer their expertise, based on the nature of the work they carry out and who granted a total of $5.6 million to the project.

• PROCOMER will provide $4 million US dollars in non-reimbursable funds as well as support in trade promotion so that the beneficiary SMEs have the opportunity to connect with international buyers and chains through their Trade Promotion Offices (OPCs) abroad and in Costa Rica. In addition, PROCOMER will serve as the operating agency for the Program.

• INA will hire a group of business and financial consultants to accompany the 200 companies selected, for a duration of 12 months, and guide them in their business models and opportunities for productive reconversion.

• SBD will provide $1.6 million US dollars in non-reimbursable funds for production supplies for companies benefited by the program.

Selection Mechanism

To opt for these funds, designated to stabilize companies affected by the global crisis following the pandemic and support their processes of productive reconversion, stakeholders must meet a series of requirements and undergo a rigorous evaluation by the institutions, who will choose the 200 beneficiaries. The selection process includes:

• An open competition, the bases of which can be found at www.programaalivio.com.
  • Review of admissibility criteria by external consultants.
  • Analysis of company status by external consultants.
  • Proposal to adjust the business model to stabilize the company through a joint proposal by external consultants and the company.
  • Selection of the 200 companies, with the highest scores, by a PROCOMER-INA Committee of Experts. The companies must be exporting SMEs or companies with export potential.

Pilar Garrido, Minister of Planning and coordinator of the economic team, stated that “the Government has promoted a series of measures that not only cater to those whose income has been affected, but also seek to ease the burden on the productive sector during this transition and, simultaneously safeguard, as much as possible, the fiscal health of the Treasury.”

She went on to say that “the approach must include protecting the productive fiber of our country to transition towards reactivation. With limited resources, it is important to implement creative initiatives between, different agencies and the private sector, as President Alvarado has indicated.”

According to Dyalá Jiménez, Minister of Foreign Trade and president of the Board of Directors of PROCOMER, this interagency alliance is designed to be a tool of continuity for the export sector. “This crisis is going to affect every industry in the country, and we want to anticipate that impact and support 200 micro, small and medium-sized companies, which is what we can do right now.”

She noted that “80% of exporters are SMEs and the export sector generates 30% of national employment. We cannot let this engine of the economy lose its drive! Therefore, our priority is to support it, so that it can sustain direct and indirect employment, and this can only be done if companies continue to operate.”

Victoria Hernández, Minister of Economy, Industry and Commerce and President of the Governing Council of the SBD, highlighted the institutional strength that allows a timely response to the challenges the country is facing due to the COVID 19 health emergency. “The Development Banking System has managed to deftly develop a program, in conjunction with PROCOMER, one of its Accredited Operating Agencies, that will help reactivate and reconvert the beneficiary SMEs so that they can face the challenges of the new world reality brought on by COVID – 19 ”.

Andrés Valenciano, Executive President INA,  explained that “the business support that INA will provide is highly strategic to ensure that the financial resources granted to SMEs are used in the best way, allowing companies to transform towards a new post COVID-19 reality.”

He went on to specify that “the hiring of experts allows us to advise hundreds of SMEs to help them navigate this emergency and prepare them to compete globally, helping with job creation and the growth of the economy.”

Project stages

• Stabilization stage: advice and support will be provided with non-reimbursable funds for working capital and production supplies, strengthening companies by providing liquidity and supporting their survival during the three most difficult months.
  • Reconversion stage: the advisory and support process continues with non-reimbursable funds for supplies and production equipment, initiating the reconversion of companies, adjusting products to the new “post pandemic” needs.
  • Acceleration stage: the advisory and support process continues with non-reimbursable funds, as well as credits (supplies, equipment and production expansion) so that companies strengthen their position in international markets, recovering lost demand and taking advantage of new opportunities.

Learn more about the Relief Program at www.programaalivio.com.