SMEs: Financing Through Capital Markets Extended

On June 18, 2025, the Argentine Securities Commission (CNV) issued General Resolution 1070, extending until December 31, 2025, the deadline for applying the 40% threshold allocated to the participation of entities that are not classified as large companies within special regimes for the establishment of financial trusts aimed at financing SMEs.

The goal of the regulation is to maintain facilities for small and medium-sized enterprises to access the capital markets, offering tools to secure funding through instruments such as financial trusts and mutual funds.

This resolution is based on previous regulations, such as:

1. General Resolution 997, which expanded the scope of eligible assets for open-ended SME Mutual Funds. This Resolution allowed the acquisition of deferred payment checks and promissory notes, up to a maximum of 20% of the mutual fund’s net assets, for trading in the direct segment (both guaranteed and non-guaranteed) with the first endorsement by companies not classified as large companies.
2. General Resolution 1019, which introduced a new participant category in financial trust structures. This participant, while lacking a SME Certificate, is also not classified as a large company according to the Argentine Tax Authority (ARCA). The regulation unified criteria for mutual funds and financial trusts, allowing the inclusion of rights or credits derived from transactions with companies meeting specific parameters. Initially capped at 20%, this limit was temporarily increased to 40% of the trust’s assets.
3. General Resolution 1039, which expanded the list of eligible assets for SME mutual funds, including other publicly offered securities issued by companies not classified as large companies.

General Resolution 1070 will become effective on June 24, 2025.