The Minister of Economic Development Dr. the Hon E. Grant Gibbons JP MP and Chairman of the Bermuda Economic Development Corporation (BEDC) Nicholas Kempe, today launched BEDC’s “Local Biz Opps” Micro Loan Product.
The launch also included BEDC Deputy Chairman Marico Thomas and BEDC Executive Director Erica Smith.
The BEDC has allocated $300,000 in funds to be used to facilitate small, short-term loans - $2,000 to $20,000 - to facilitate Local Business Opportunities developing or expanding as a result of the 35th America’s Cup being held in Bermuda between May and June 2017.
The Local Biz Opps Micro Loan product is available to all small and medium-sized businesses, island wide, including vendors and those businesses located in designated Economic Empowerment Zones.
The product was developed in response to an identified gap in the lending market in order to assist Bermuda’s small and medium-sized businesses scale up and meet the variety of needs of visitors coming for the 35th America’s Cup. This product provides access to the often time-sensitive and secured financing needed to purchase goods, services, and/or capital items directly related to generating business revenue.
Business needs were identified during the Local Biz Opps public meetings held in February and March by the ACBDA. To help meet these needs, we have created this short-term financial product, to assist businesses with inventory purchases, cost of goods sold, service, contracts, or direct costs for capital items directly related to meeting the consumer needs rapidly developing because of Bermuda hosting the America’s Cup.
The Micro Loan product differs from a regular loan in the following ways:
- Approved loans are 100% guaranteed by the BEDC
- The interest rate is fixed at 4.5% for vendors and EEZ Businesses and 5% for all other small and medium-sized businesses
- The applications are processed by BEDC Officers and approved by the Executive Director
- It is short-term - repayment terms will be negotiated between 1 and 4 months with all funds to be repaid by July 31st 2017 (30 calendar days after AC35 ends)
- It is immediate - processing, approval, and disbursement of funds is usually within 10 business days from receipt of complete applications
Minister Gibbons stated, “The Local Biz Opps Microloan will serve as a much needed financial resource for existing and potential entrepreneurs to fund the business needs that will be arising from the America’s Cup. As the Minister of Economic Development, I understand the importance of continuously developing local entrepreneurs. I believe in innovative products like this that easily support and facilitate business development thereby contributing to the growth of our local economy.”
“We are confident that this product will offer great value to our Island’s local entrepreneurs and help to catalyse them into action with regards to being ready for AC35,” stated Mr. Kempe. “Contrary to popular belief, there is a great number of smaller business opportunities developing that should require minimal overhead to bring to fruition and this microloan will provide much-needed assistance in this regard.”
BEDC Executive Director Erica Smith noted: “BEDC is continuously creating innovative products and services to assist local business owners in starting, sustaining, and growing their business endeavours. This microloan continues this trend. We are pleased to be in a position to offer this financial product to help our local businesses take advantage of AC35 business opportunities.”
The Local Biz Opps Micro Loan product is available until June 30th 2017. Interested business owners should contact the BEDC directly by calling 292-5570 or by email at info@bedc.bm.
Additional information can also be found at www.bedc.bm.