BEDC: Covid Businesses Grants/Loans Available

April 14, 2021 | 0 Comments

Businesses can apply via the BEDC for Covid-19 Emergency Grants – with amounts ranging from $5,000 to $7,000 per business — and they can also apply for the Covid-19 Combined Loans/Grants, with amounts under that programme ranging from $10,000 to $40,000 depending on business size.

Premier David Burt

Speaking at last night’s press conference, the Premier said. “With effect from tomorrow morning, businesses can go online to bedc.bm, the website of the Bermuda Economic Development Corporation, to apply for the updated and expanded COVID-19 Emergency Grants as well as updated and expanded COVID-19 Combined Loans/Grants under the Business Continuity & Sustainability Funding Programme.

“The Emergency Grants will be used to cover immediate costs associated with recurring expenses including rent, utilities, social insurance, and health insurance premiums for employees.

“Emergency Grant funding will be available in maximum amounts ranging from $5,000 to $7,000 per business. Businesses impacted by Public Health notice closures and restrictions back in December 2020 and January 2021, who received an Emergency Grant already, can re-apply for another Emergency Grant, however the maximum amounts available to these businesses will be 80% of the first maximum grant amount.”

BEDC

A  BEDC spokesperson said, “Understanding the impact to businesses as a result of the recent Public Health closure and restrictions notices issued throughout March and early April 2021, as well as the Stay at Home Order, BEDC wishes to advise the public of how it can assist any business impacted.

“BEDC will continue its support to businesses impacted by the Coronavirus Pandemic since April 2020 through advice to assist in right siding; through entrepreneurship education webinars and courses to help businesses learn much-needed skills to pivot, sustain, and continue; and through a range of funding products to enable businesses to survive and eventually thrive.

“Through the generous grant from the Bermuda Government in 2020, BEDC continues to be able to support businesses in need of funding through its various funding products as follows:

  • 1. BEDC Covid-19 Emergency Grants – through BEDC
  • 2. BEDC Covid-19 Combined Loans/Grants – through BEDC
  • 3. BEDC Covid-19 Loan Guarantees – through the Banks and the Bermuda Credit Union
  • 4. BEDC Covid-19 Overdraft Guarantees – through the Banks
  • 5. BEDC Micro loans [increased amounts] – through BEDC
  • 6. BEDC Loan Guarantees – through the Banks and the Bermuda Credit Union

“With effect from 9 am Wednesday April 14th, 2021, businesses can go online to www.bedc.bm to apply for the updated and expanded Covid-19 Emergency Grants as well as updated and expanded Covid-19 Combined Loans/Grants under the Business Continuity & Sustainability Funding Programme.

“The emergency grants will be used to cover immediate costs associated with recurring expenses including rent, utilities, social insurance, and health insurance premiums.

“Funding thresholds will remain divided into the 5 bands of financing established in 2020 as part of BEDC’s Covid-19 Business Continuity & Sustainability Funding Programme. The first 4 Bands are allocated to small businesses and the last band is earmarked for medium-sized businesses as defined by BEDC’s legislation.

“Emergency Grant funding will be available in maximum amounts ranging from $5,000 to $7,000 per business. Business impacted by public health notice closures and restrictions back in December 2020 and January 2021, who received an Emergency Grant already, can re-apply for another Emergency Grant, however the maximum amounts available to these businesses will be 80% of the grant.

“BEDC has initially set aside $1M in Covid-19 funding support provided by the Government for this emergency grant relief. The total amount of funds available can be increased if determined additional support is needed and demand is high.

“As is the case with all BEDC financial products, applications will be reviewed, and funds provided based on need. The BEDC Covid-19 Emergency Grant Funding programme will be in place until the funds are exhausted or until deemed no longer necessary.

“In addition to the Emergency Grants, BEDC has also revised the existing Covid-19 Combined Loan/Grant Funding available under its Business Continuity & Sustainability Funding Programme that was launched in April 2020 to allow additional funding to those business owners that need it.

“The Combined Loan/Grant Funding allows all businesses impacted by Covid-19 to apply for higher amounts of funding support than the Emergency Grants can provide, to address immediate operating/working capital payables such as:

  • rent
  • payroll
  • utilities
  • insurance
  • fees
  • immediate inventory payables or supplies needs can be considered on a case-by-case basis

“There will be very limited use of funds under this programme for capital purposes. Impacted business can apply for total maximum funding [combined loan/grant] in amounts ranging from $10,000 to $40,000 depending on business size, with each band of business receiving both a loan and a grant portion.

“It is realized that the impacts of Covid-19 have lasted longer than anticipated or desired. As such, businesses who have been helped previously with this product have the ability to re-apply for additional funding under this programme as long as the request is for Covid-19 impacts on the business as defined above.

“The maximum amount of additional funds available for businesses re-applying will be 75% of the maximum funding allowed with the first approval. The maximum grant portion available for those requesting additional funds will be 25% of the total funding for small businesses and 15% of total funding for medium businesses.

“Given there are limited funds, priority of funding will be given to first-time applicants to ensure as many businesses are assisted as possible. Businesses re-applying will be required to submit an updated application form as well as updated information about their business. Businesses will be limited to re-applying once over the life of the programme. This means the first application and one re-application.

“Full details of both programmes can be found online at www.bedc.bm.

“BEDC recognizes that even with the above-mentioned funding product some businesses will need even higher amounts or different types of funding support. As such, as of 9 am Monday, April 19th, 2021, BEDC will introduce its Expanded Micro-Loan Programme which will offer larger direct loans ranging from $30,0001 to $70,000 as a supplement to its current Micro-Loan Programme which maxes out at $30,000. BEDC will also share updates to its Guarantee Programme consisting of both guarantees for loans and overdrafts issued by financial institutions.

“With the variety of funding support products, BEDC is committed to providing options for businesses to consider. If someone has maxed out with what they can receive with the grants and grants/loans, they can take advantage of these other additional funding options being made available under the new expanded Micro-Loans and the Guarantees.

“Overall, BEDC will continue to develop products within its existing funding capabilities to best leverage the total funding available and assist as many businesses as possible. Business owners will be able to utilize a combination of BEDC financial products, Bank financial products, and financial products from other entities who meet BEDC’s partner requirements to maximize their ability to get the capitalization they need to start, survive, and thrive.

“For more information about the Covid-19 Emergency Grants and BEDC’s Covid-19 Funding Programme, visit the BEDC website at www.bedc.bm, or email info@bedc.bm.”

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As the island and world deals with the Covid-19 pandemic, we are doing our best to provide timely and accurate information, and you can find more information on the links below.

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