New Small Business Loan Product Launched
Nick Kempe, the Chairman of the Bermuda Economic Development Corporation [BEDC], and Michael Veale, Sr. Vice President of Personal and Commercial Banking at Capital G, today [Sept 18] launched the BEDC and Capital G Micro Loan Product for Small Businesses.
The Micro Loan product will be available to all small businesses, island wide; including vendors and those businesses located in a designated Economic Empowerment Zone. Capital G has allocated $100,000 in funds to be used for this product to facilitate small loans in amounts from two thousand dollars up to seven thousand five hundred dollars.
The Micro Loan is designed to assist businesses with inventory purchases and/or capital items directly related to increasing sales or services.
[L-R] Michael Veale, Sr. VP Personal and Commercial Banking and Nick Kemps, Chairman of BEDC.
“The Micro Loan Product was developed in response to an identified gap in the lending market”, a spokesperson said. “Results from the BEDC bi-annual stakeholder survey showed that small businesses were in need of financial assistance for small loan amounts that the banks would not typically finance for commercial purposes.
“This product will give the small business person access to the often time-sensitive and secured financing they needed to purchase goods and/or capital items directly related to generating income for their businesses.”
The small business Micro Loan product differs from a regular loan in the following ways:
- Only offered to start up and existing small businesses. The BEDC defines a small business as Bermudian – owned and managed, operating locally, having an annual gross payroll not exceeding five hundred thousand dollars ($500,000) or having annual sales revenues of less than one million dollars ($1,000,000).
- it is 100% guaranteed by BEDC
- The bank interest rate is fixed at 3.5% for vendors and EEZ Businesses and 4% for all other small businesses
- The applications are processed by BEDC Officers
[L-R] Ray Jones, BEDC Finance Director; Marico Thomas, BEDC Director and member of the Guarantee Sub-Committee; Lucrecia Ming, BEDC Small Business Director; Michael Veale, Sr. VP Capital G Personal and Commercial Banking; Nick Kempe, BEDC Chairman and Chair of the Guarantee Sub-Committee; Erica Smith EEZA Director; Hasan Durham, BEDC Board Member and member of the Guarantee Sub-Committee; Michelle Khaldun, BEDC Executive Director.
Mr. Kempe stated “This is the first time that the BEDC has partnered with Capital G to offer a targeted guaranteed programme. We are confident that this pilot -programme will offer great value to small businesses and will conduct a review in twelve months to assess the demand for the programme to determine if we should extend the program to include other local financial institutions.
“Although this Micro Loan programme will be a first for the BEDC and Capital G it is just one example of our partnership. This is a continuation of a fruitful relationship that has been established over the years.
“Previously Capital G has worked with the BEDC by graciously sponsoring events like the annual Rocket Pitch Competition and Launch Pad as part of Global Entrepreneurship Week in Bermuda. In addition they have participated as presenters and panellists in seminars and networking events coordinated by BEDC.
“This new joint venture to offer the Micro Loan product with the BEDC re-confirms Capital G’s commitment to the local business community and, like the BEDC, is committed to business success.”
Mr. Veale added that “it has been a pleasure to work with the BEDC team over the years. The new partnership to offer the Micro Loan is just one of the many examples that Capital G supports the local business community, recognizing that small businesses are the life blood of the local economy.”
The BEDC and Capital G Micro Loan will be available to all small business owners as of October 1st 2013. Interested small business owners should contact the BEDC directly by calling 292-5570 or by email at info@bedc.bm. In the coming weeks, more details about the programme will be available on the BEDC and Capital G websites.
I just tried sending an email to info@bedc.bm and received a delivery failure email. Can you please confirm that this is the correct email address?
Hi Cece
Please be advised that this is the correct email address and the issues with the BEDC mail system have been resolved. We apologise for any inconvenience the down time may have caused and look forward to hearing from you.