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Micro Loan Programme

Micro Loan Programme

About the BEDC Micro Loan Programme

 BEDC has allocated funds to be used to facilitate small loans in amounts up to $30,000. The BEDC will offer a 100% guarantee on the loans to qualified applicants. 

The product was developed in response to an identified gap in the lending market. Results from the BEDC’s 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 need to purchase goods and/or capital items directly related to generating income for their businesses. 

A Few Details

  • Minimum Loan Amount: $2,500
  • Maximum Loan Amount: $30,000
  • Monthly Repayment Terms on Inventory & Goods: Up to 9 months
  • Monthly Repayment Terms on Capital Assets: Up to 24 months
  • Security: 100% BEDC Guarantee
  • Approval Processing Times
    • 20 business days for BEDC approval from receipt of full and complete application
    • 3 business days for funds disbursements once approved
  • Maximum # of applications:
    • Unlimited
    • The prior loan must be paid off before a new application can be made
    • New applicants take priority over repeat applicants
  • Restrictions:
    • Micro-loan product is a needs-based product
    • It is not to be used by those businesses that have access to liquid assets
  • Default Penalty: Default of payment of the loan as per the terms and conditions will incur a default penalty rate double the loan interest rate.

What is the purpose of the BEDC Micro Loan?

The Micro Loan is designed to assist start up and businesses with inventory purchases and/or capital items directly related to increasing sales or services. In addition it can be used for working capital.

The details of the loan programme are as follows:

  • Approved loans are 100% guaranteed by the BEDC.
  • Subsidised credit check per applicant/owner.
  • Repayment terms for inventory, goods, capital assets, and working capital up to 42 months.
  • Applications are processed by the BEDC Officers.
  • BEDC Executive Director approves.
  • Immediate – BEDC processing, approval, and disbursement usually within 15 business days from receipt of complete application.
  • Default penalty rate is double the interest rate

Small and Medium-sized Businesses

  • 3.5% interest rate
  • Application Fee – $75 or .75% of loan whichever is greater

Economic Empowerment Zone Businesses and Island Vendors

  • 3% interest rate
  • Application Fee – $50 or 0.5% of loan whichever is greater

Who Can Apply?

The Micro Loan product is available to all small businesses, island wide; including vendors and those businesses located in a designated Economic Empowerment Zone. 

The BEDC defines a small business as Bermudian – owned and managed; operating locally; having an annual gross payroll not exceeding $500,000 or having annual sales revenues of less than $1,000,000. 

The BEDC defines a medium-sized business as a Bermudian-owned & owner-operated business enterprise with at least three of the following attributes: 

  • Gross annual revenues between $1 million and $5 million 
  • Annual payroll between $500K and $2.5 million 
  • A minimum of 11 and a maximum of 50 employees 
  • In operation for a minimum of 10 years
  • Net Assets of less than $2.5 million 

Although open to all businesses who meet the criteria, the BEDC desires to expose Bermuda’s small business.

What You'll Need - Micro-Loan Programme Checklist

Please ensure that you have reviewed the checklist below and have all the necessary information needed to apply.

Please complete and compile all information below, BEFORE filling out the application.

  • Personal Financial Statement – Personal financial details of each owner of the business. Please fill out and submit the templates below for each owner of the business.
  • Bank Statements – Client to supply 3 months of bank statements if the business is established. Required monthly when in repayment phase. If there are no historical financials then 12 months of bank statements are required.
  • Financial Information/Cash Flow Statement – Required to submit at least the last 12 months of financial information on template form if an existing business. Required to submit 12 months of Cash Flow Projections.
  • Business Plan or at minimum Business Profile – Clients must provide information about the history and future of the business on a prepared template. Clients are also asked to provide any signed contracts and/or agreements to support the loan amount. Please fill out the template below.
  • Business & Personal References – One business and one personal reference prepared by a client, service provider, vendor, known business associate.
  • Estimates & Quotes – Detailed listing of goods to be purchased by client for business through the loan.
  • Location of Business – Must submit documentation to attest to location of business and where permission/licenses are required, they are received.
  • Identification – Clients are required to demonstrate that the applicant is Bermudian. Applicants must submit a copy/image of their ID for confirmation. If non-Bermudian is a partner, the Bermudian must hold the controlling interest and a copy of the partnership agreement must be submitted.

How Do I Apply?

1: Register Your Business

Visit the BEDC Member Registration page to fill out your business profile. Completing this form to the best of your ability will help us to better service your needs.

2: Submit Business Profile

Submit your Business Profile. Once you hit submit, one of our officers will vet your information and add it to our register. You will then be given your BEDC Member #, Business Register #, Vending License # (if applicable). This can take up to 2 business days.

3: Log In to Portal

Once you have received your BEDC Member #, Business Register #, and Vending License # (if applicable), please take a moment to log in to your new BEDC Member Account via the BEDC Member Portal. You can now apply for BEDC products & access our resources.

4: Submit Application

Navigate to Micro Loan Form in the BEDC Member Portal. Fill out the application form, supplying us with all information and documents required. Before beginning your application, please take note of the product checklist that outlines all information needed in order to process your application.

5: Processing Application

Once your application is submitted, it will be reviewed by our administration team for completeness and then forwarded on to an officer for processing. At this time the officer assigned to your case may ask you to provide further details or clarification in reference to your application.

6: Application Approval

After your application has been processed, it will be submitted for approval. If your application is approved you will be notified, the product will be issued to your account and funds will be disbursed (if applicable).

*Applications will be processed within 15 business days of BEDC receiving of ALL necessary information and requirements.