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

Loan Guarantee

About the
Loan Guarantee Program

While not a bank, the BEDC will consider acting as a guarantor for a portion of a bank loan for small or medium sized businesses that appear viable and where the credit worthiness of the borrower is sound. As guarantor of last resort, the BEDC can guarantee up to 75% of the agreed loan. The maximum guarantee amount is $300,000. Any small or medium sized business that has no other means of collateral (cash, real estate, equipment, vehicle chattel, inventory, etc.) may contact the BEDC and apply for a guarantee.

The following are all required when submitting an application for the loan guarantee program – A business plan, personal financial statement, financial/cash flow statements, bank statements and business references. Clients are also asked to submit any estimates listing goods to be purchased through the loan.
All applicants must have identification that demonstrates applicant is Bermudian.

As well as, the terms and conditions of your bank and a complete BEDC loan guarantee application form. There is an upfront non-refundable administration fee of $300 that will be applied towards the total Loan Guarantee Fee. A $50 upfront non-refundable Credit Check Fee is required per applicant and the
Loan Guarantee Fee is – Fees range from 1.5% to 3.25% depending on the loan amount and available security

The details of the loan programme are as follows:
75% Guaranteed
Up to 75%, Max guarantee of $300,000
Repayment Terms
Determined by the Bank
Final approval by the BEDC Board
Penalty Rate
Default penalty rate is double the interest rate
Credit Check
$50 non-refundable credit check fee per applicant to be paid at the time the application is submitted.
25 business days from receipt of a complete application
Processing Time
BEDC processing, approval, and disbursement usually within 25 business days from receipt of complete application.
Small and Medium-sized Businesses:
Interest Rate
Determined by the bank
Application Fee
Economic Empowerment Zone Businesses and Island Vendors:
Interest Rate
4.5% interest rate
Application Fee

The Loan Guarantee product is available to all small and medium 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.

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 Template
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.
Cash Flow Statement Template
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.
BEDC Business Profile Template
Business & Personal References
One business and one personal reference prepared by a client, service provider, vendor, known business associate.
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 and where permission/licenses are required, they are received.
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.
Confirmation From Bank
Get confirmation from the bank that they will support the loan request with the understanding that you will be seeking guarantee assistance from BEDC.
Copy of Bank Terms
Bank should forward a copy of their terms to BEDC. This will include the Bank’s terms and conditions of the loan (i.e. the interest rate, length of time and what additional security they will accept).
Once Approved
If approved 1.5% – 3.75% of the Guarantee amount is payable to BEDC prior to receiving the Guarantee Approval Letter. Applicant to sign a Guarantee Approval Letter of which a copy will be sent to the Bank. The Guarantee Certificate will be forwarded to the Bank once we have received the Bank’s final draft of their Facility Letter and all other conditions as stipulated in the Guarantee Letter have been met.
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 Loan Guarantee 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.