President López Obrador has announced a microfinance program for small business owners.

The president told his morning press conference today that 6 billion pesos (US $316.3 million) has been allocated to the program, which will lend 6,000 pesos (about $315) to each of one million successful applicants. The one-year loans will be interest-free.

Recipients will have up to three months before they have to begin repaying the loans at the rate of 500 pesos a month.

Beneficiaries will include small businesses and entrepreneurs such as the owners of small stores and repair shops.

Once the loaned amount has been repaid applicants will be able to request a new one, explained the president. The federal Secretariat of Economy will be in charge of administering the program.

The money will be delivered directly to recipients, without any intermediaries, and favor distinct sectors such as youths, older adults and students.

Source: El Financiero (sp), El Economista (sp)