(441) 292-5570
48 Church Street, Hamilton Bermuda
48 Church Street, Hamilton Bermuda

Debt Consolidation Micro Loan

About the
Debt Consolidation Micro-Loan Program

BEDC can offer debt consolidation micro loans to small businesses up to a maximum of $30,000. A total of $200,000 has been allocated to this initiative.The Debt Consolidation Micro Loan, a bridge product to BEDC’s initial pure business development micro-loan, was created in line with BEDC’s dialogue with small businesses over the last 3 years. Many communicated that, primarily due to the recent recession, such a product would be helpful to consolidate small debts, reduce their carrying costs, and thereby increase business cashflows.

What is the purpose of the BEDC Debt Consolidation Micro Loan?

The Debt Consolidation Micro Loan is designed to assist existing businesses with consolidating business back debts between $5,000 and $20,000.

General Conditions:

  • The back debt must have been accumulated within the last 3 years
  • Evidence of back debt related payment plans and/or evidence of attempts to repay as best as possible may be required
The details of the Debt Consolidation Micro Loan are as follows:
No Need for Collateral
Approved loans are granted unsecured, in other words, without the need for collateral.
Repayment Terms
Repayment terms up to 60 months.
Interest Rate
5.0% Interest Rate
Application Fee
Application fee – $200 or 2% of loan whichever is greater; payable at application submission
Credit Check
Credit check fee – $50 payable at application submission
Structured for Success
As BEDC will be providing an unsecured credit facility, all loans will be thoroughly vetted and if granted, will be structured in ways to enable approved applicants to successfully fulfill their loan obligations.
Processing is 20 business days from receipt of complete application
Economic Empowerment Zone Businesses and Island Vendors:
Interest Rate
4.5% interest rate
Application Fee
Application Fee – $150 or 1.5% of loan whichever is greater; payable at application submission

The Debt Consolidation product is available to all small and medium businesses island wide, including vendors and those businesses located in a designated Economic Empowerment Zones.

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.

Should you be approved, you will be required to sign a BEDC Loan Agreement as well as a Standing Order Agreement with your bank to ensure payments to BEDC are automatically deducted. The BEDC will then pay the vendors who are owed the back debts directly via direct deposit and provide you with evidence of all payments totalling the total amount of the BEDC back debt loan.

After payment of all back debts, BEDC then schedules the first follow up meeting with you to take place within 2 weeks of the date of dispersed funds. The Officer will check in bi-monthly with you by phone and meet with you every month for the first 6 months and then quarterly for the life of the loan.

Please ensure that you have reviewed the checklist below and have all the necessary information needed to apply.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.
Personal Financial Statement TemplatePersonal Income StatementPersonal Balance Sheet
Bank Statements
• Client to supply statements. • 6 months of bank statements required if existing business. • Required monthly when in repayment phase.
Financial Information/Cash Flow Statement
• Required to submit at least the last 1 year of management accounts/financial statements • Required to submit 24 months of Cash Flow Projections
Cash Flow Statement
Submit detailed listing of all payables to be consolidated.
Note that all copies are to be on business letterhead to verify the legitimacy of the back debt payable.
Business Plan or at minimum Business Profile
• Providing information about the history and future of the business on a prepared template • Provide any signed contracts and/or agreements to support loan amount
BEDC Business Profile Template
Business & Personal References
• 1 business and 1 personal reference prepared by a client, service provider, vendor, known business associate • Must not be related to the applicant or an employee of the applicant
BEDC Business or Personal Reference Template
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
• Demonstrates that the applicant is Bermudian. • Passport ID preferred • If non-Bermudian is a partner, the Bermudian must hold the controlling interest and a copy of the partnership agreement must be submitted.
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.
Submit Application
Navigate to Debt Consolidation 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.
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.