The image of the Amazon that comes to mind for most people is lush forest. But it is dotted with cities, and it is in those urban areas that the majority of the Amazon’s roughly 30 million people live.
Estímulo Impact Fund was created in 2020 to bring much needed capital to small businesses throughout Brazil, including the Legal Amazon. That region, which covers 59% of Brazil’s territory, is the poorest in Brazil, with enormous gaps in sanitation, housing, health, education, employment, connectivity and basic services. Still, it is home to 3.6 million businesses, more than 90% of which are micro or small businesses.
Our blended finance fund was set up to support them through accessible credit, guidance, training and strategic connections. Our thesis for the Amazon region specifically: by investing in the economic development of Amazonian cities – with quality jobs and income – we reduce pressure on the forest.
That thesis is backed by research from the World Bank and Instituto Escolhas that links poverty and lack of economic alternatives to illegal deforestation, and conversely, inclusive urban development to reduced inequality and environmental degradation.
Amazon impact
When we arrived in the Amazon in 2024, demand for credit exceeded our expectations. Entrepreneurs submitted applications for nearly $400 million in credit – far above our capacity.
We have disbursed around $3 million to 142 small businesses in 67 cities, 97% of them in low-income areas. Our loans have touched more than 1,700 small business owners and employees and 5,500 people more broadly.
One borrower, Francisco Ramos from Novo Progresso, shared that without work in the city, illegal mining seemed like the fastest way to earn an income. Because of his loan from Estímulo, he today runs a digital products store.
Paulo Pinho, an engineer from Manaus, spent two years unemployed before starting a solar energy business. With Estímulo’s loan, he was able to expand and hire three employees.
Ramon Reis in Coroatá used a loan from us to expand access to Internet services to rural areas without access. He also works on fire prevention awareness.
In Curuçá, Waldener do Vale, owner of a small grocery store, used a $6,000 loan to add new products to his shop, giving more choices to families living miles away from the city.
These stories highlight how targeted credit can make the difference between an illegal economy and a path of sustainable development.
More than 70% of our loans went to inland cities. The municipalities with the lowest Human Development Index were the ones with the lowest delinquency rates.
Regional credit fund
To expand our work and impact in the region, Estímulo joined forces with Itaú, Fundo Vale, and Amazonian entrepreneur Denis Minev, the CEO of Bemol and private sector representative at COP30, to develop a theory of change specific to the region.
“A more formal and prosperous society not only reduces pressure on natural resources, it also has the potential to become a defender of conservation,” said Minev at this week’s Climate Week New York. “The solutions for the Amazon will be much more urban than rural.”
There are plenty of opportunities: smarter land use, science and technology, regenerative agriculture, and impact credit are all engines for this reinvention.
We recently launched the Estímulo Amazon Fund with a goal of raising $20 million to bring credit and development to underserved Amazonian regions. The initiative rests on three pillars:
- Accessible credit: Providing the lowest interest rate in Brazil, no collateral required, no bureaucracy, 100% online, and with grace periods for repayment.
- Tailored training: Offering hands-on support through mentoring, consulting and learning materials delivered via WhatsApp on financial management, marketing, sales, productivity, technology, and sustainability – all adapted to local realities.
- Strategic connections: Leaning on a network of partners, investors and seed capital to scale impact businesses and empower entrepreneurs as true agents of transformation.
The impact we measure tracks revenues, job creation, reduced financial stress, and improved quality of life – along with impacts on crime rates and deforestation.
Protecting the forest requires the creation of opportunities for people to live with dignity in their territory. We seek to prove that it is possible to combine productive inclusion, environmental protection and sustainable returns.
Lucas Conrado is the director of the Estímulo Impact Fund.
