By Jamillah LodgeThis article is part three of a five-part series of articles to help you to understand how the Bermuda Economic Development Corporation (BEDC) can help you reach your goal of owning and operating your own business.In the last two articles we provided an overview of the services offered by BEDC and focused on the educational component provided as a result of the quarterly series of seminars and targeted industry specific workshops that we host. In this article we will focus on how the BEDC can help you access the capital you need to finance your business.There is a saying, “It takes money to make money”.This statement is true; however often times, start-up businesses do not have access to the necessary capital that they need to get their businesses off the ground.How then can a start-up business get the capital it needs?Businesses can be financed in several ways; loans or grants from friends and family, venture capital from investors, or bank financing from local lenders. BEDC is in a position to assist with the latter of these financial resources.If you are in need of a bank loan BEDC can offer assistance in the form of a loan guarantee.What is a loan guarantee? In short, it’s a promise to pay.That’s right, for those businesses that are deemed feasible, and have no other source of collateral, BEDC, can guarantee 50 percent of the loan amount up to a maximum of $200,000. Our Officers will work with interested entrepreneurs to compile necessary documentation including a business plan, personal financial statement, cash flow projections and other information as appropriate for the application.Our loan guarantee programme was designed to assist those, with great ideas and limited access to collateral; to obtain the financing they need to make their business a reality. Although, BEDC is the guarantor of last resort, hundreds of business owners have realised their dreams as a result of the BEDC guaranteeing their loans.Guarantees have been issued to business in various industries including food services, construction, health, personal care and business services. One of our clients, in the healthcare industry stated, “When I was ready to set up a medical/surgical practice in Bermuda, I went to [BEDC] for assistance.“They assisted me with presenting my business plan to the local banks that allowed me to secure the loan I required for the $100,000 I needed. When in need [BEDC] stepped up to the plate.”Recently the BEDC partnered with Capital G to launch a new financial product to assist existing and new business owners obtain financing. The BEDC and Capital G Micro-Loan Product launched in October 2013 to provide small loans in amounts from $2,000 up to $7,500.Capital G has allocated $100,000 in funds to be used to facilitate these loans of which the BEDC will offer a 100 percent guarantee to qualified applicants.The product was developed in response to an identified gap in the lending market.Results from the BEDC’s biannual 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.The Micro-Loan is designed to assist start-up and existing businesses with inventory purchases and/or capital items directly related to increasing sales or services.This new 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.The BEDC Loan guarantee and the Micro-Loan product is available to all small businesses, island wide.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 million.For more information on these products log on to our website at www.bedc.bm or contact our office directly at 292-5570.Check out next month’s article when we will discuss how BEDC can further assist with micro-entrepreneurial endeavours.Business Buzz is a monthly column presented by the Bermuda Economic Development Corporation. Every month, read about entrepreneurship, obtain business management tips, and find out what’s going on in the small business sector.Jamillah Lodge is a Business Development Officer for Bermuda Economic Development Corporation. She specialises in providing aspiring and existing entrepreneurs with business development advice and loan guarantee assistance.In addition, Jamillah manages the marketing and communications plan for the Corporation and is responsible for developing mentorship and youth entrepreneurship programmes. She is a former business owner and holds a degree in Business Administration with a concentration in Marketing. The opinions expressed in this article are those of the writer and should serve a general guide and should not be considered as replacement advice from a lawyer, accountant or other professional service provider. Readers should consult with the appropriate professionals as necessary.If you have questions about starting a business in Bermuda, just ask BEDC: E-mail us at info@bedc.bm or call 292-5570.