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

BEDC AND THE BERMUDA CREDIT UNION PARTNER TO FURTHER ASSIST BUSINESS OWNERS WHEN THEY NEED IT MOST

BEDC AND THE BERMUDA CREDIT UNION PARTNER TO FURTHER ASSIST BUSINESS OWNERS WHEN THEY NEED IT MOST
Hamilton, Bermuda 6 August 2020The Bermuda Government, BEDC’s Board of Directors, and BEDC recognize the economic impact Covid-19 has had on local businesses, and in response, has partnered with the Bermuda Credit Union (BCU) to provide additional options for financial support to Bermuda business owners.  As a result of the COVID-19 pandemic the Government of Bermuda has made funds available to BEDC to enable it to set up the COVID-19 Business Sustainability & Continuity Funding Programme (“the Funding Programme”) to provide additional funding to assist Bermuda’s small and medium-sized businesses. Under the Funding Programme the BEDC and the BCU currently have entered a loan guarantee scheme for the first time in the 40-year history of the BEDC to provide members of the Bermuda Credit Union with a limited guarantee in relation to loans granted by the BCU. Mr. Graham Nesbitt, BCU Board Chairman indicated that “the partnership is in keeping with the International Credit Union Movement’s over 100-year old time-honoured philosophy of ‘I Am My Brother’s Keeper’. He continued, “The 48-year-old Bermuda Credit Union Co-operative Society welcomes the efforts being made by the BEDC in embracing the entrepreneurial spirit and partnering with us to provide this additional service. Within the Credit Union membership are entrepreneurs including taxi operators, office and home cleaners, food truckers, operator of home for seniors, cosmetologists, photography post card providers, etc.” Many businesses are in urgent need of financial assistance and in order to deploy funds as soon as possible and expedite the application process for the loans under the Funding Programme, the BEDC has approved the deployment of pre-approved guarantees to the BCU which provides the BCU with the authority to apply the funds against guarantees to applicants. “BEDC recognizes the challenges businesses are facing currently. The goal by entering into this partnership with the Credit Union is to provide access to other financing outside of the traditional bank financing.” stated, Mr. Ray Jones, BEDC Acting Executive Director. There are over 5,000 members of the Bermuda Credit Union Co-operative Society. It’s members have come to appreciate the value of the co-operative that the Credit Union is which is reflected in the membership growth since January 2020 with an approximate growth of $½M per month and over the past five years experienced over 140% growth.
  • BEDC can guarantee or provide a collateral instrument to the BCU to cover up to 75% maximum of the business loan up to a maximum guarantee of $300k with the maximum repayment terms for loans up to 5 years.
While $300,000 is BEDC’s maximum guarantee to any one business, BEDC will flexibly structure its guarantee in any number of ways. Processing and approval times for guarantees is 15 business days from receipt of a complete application. For more information about BEDC’s Funding Programme for businesses impacted by Covid-19, please visit our website at www.bedcstage21.wpengine.com , email, [email protected], or by call 292-5570. About BEDC Bermuda Economic Development Corporation (BEDC) is Bermuda’s premier source of free confidential business advice for entrepreneurs. Its mission is to inspire, inform, support and grow new and existing Bermuda businesses through education, guidance, data provision, advocacy, networking and financing. BEDC has assisted thousands of entrepreneurs start and expand small and medium-sized businesses. BEDC provides free technical business advice and information, and loan guarantees assistance and manages the Economic Empowerment Zones, Vending Licenses, the Enterprise Bermuda Incubator, and the Economic & Cooperative Development Initiatives. Under BEDC’s legislation, a “Small business” is defined as Bermudian-owned and owner-operated business enterprise with –
  1. Gross annual sales revenues of less than $1,000,000; or
  2. An annual payroll of less than $500,000
Likewise, a “Medium sized business” is Bermudian- owned and owner-operated business enterprise with at least 3 of the following attributes –
  1. Gross annual revenues of between $1 million and $5 million
  2. Net Assets of less than $2.5 million
  3. An annual payroll between $500,000 and $2.5 million
  4. Between a minimum of 11 and a maximum of 50 employees; and in operation for a minimum of 10 years
About BCU The formerly known BIU Members Credit Union Co-op. Society changed to the Bermuda Credit Union Co-op. Society in September 2017. The BCU was formed in 1972 through the instrumentality of the leaders of the Bermuda Industrial Union (BIU). The Credit Union is affiliated with the World Council of Credit Unions, which has a history dating back to the early 19th Century. The World Council of Credit Unions servers 274 million households in over 116 countries and 85,400 credit unions with assets in aggregate of over US$2 trillion. Within the Caribbean, there are over 297 Credit Unions across 16 territories with assets in aggregate of US$6.4B. The Bermuda Credit Union Co-op. Society is the sole Credit Union in Bermuda, with an asset size of $24M and serves the financial needs of over 5,000 conscientious, ambitious and proud members. Everyone involved is proud to be associated with the only indigenous financial co-operative on this island. Credit Unions today, though autonomous, operate under the fundamental tenets crafted by England’s Rochdale Pioneer Co-operators, namely
  • Open Membership – non-discrimination irrespective of colour, religion, class or creed;
  • Democratic Control – one man, one vote, irrespective of share ownership;
  • Continuous Education;
  • Not for Profit, Not for Charity, but for service-surpluses that are spread equitably across the membership and not to an elite class of shareholders;
  • Patronage Refund – where supernormal surpluses are made in any financial year, refunds for interest paid on loans may be made; and
  • Co-operation among Co-operatives.
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