The Bank of N.T. Butterfield Ltd. has set up a new unit which will attempt to foster small businesses into becoming larger ones.

The bank formed the Business Banking Centre by consolidating under one umbrella all of the smaller businesses currently being serviced by a variety of sections.

The section will be located at head office on Front Street.

Bank vice president of Personal and Branch Banking Michael Smith said the unit would generally cater to startups and ongoing businesses with an annual revenue of between $150,000 to $750,000.

Mr. Smith said this size of enterprise was previously lumped in with all other businesses and perhaps weren't getting the kind of attention they needed.

"There really isn't any fixed measure,'' Mr. Smith said. "For example some small restaurants exceed that kind of turnover. There is a certain degree of flexibility. Part of the plan is to work with clients and help them grow.'' Michelle Khaldun is heading the new section, which currently has three other staff. The unit is in the process of adding five more staff to make up the section.

Ms. Khaldun is the former general manager of the Bermuda Small Business Development Corporation. The section will work closely with the agency to help entrepreneurs develop their business plans so these will be acceptable once presented to the bank for financing arrangements.

"We will be consulting with them on a frequent basis so businesses have a reasonable chance of success when they come to the bank with a request,'' Mr.

Smith said.

Staff will provide on-going consultation to the businesses, helping them grow and target customers. They will also provide advice on mergers and acquisitions if an opportunity presents itself, but this area is not a focus for the group.

"We can assist by casting an independent eye over the business plans to help them achieve projections they say they can reach,'' Mr. Smith said. "These days a tightly run business is needed in order to succeed. We want to work with businesses that will grow.'' The section is currently providing services to a diverse range of about 500 businesses. Mr. Smith said in general the number of businesses in the retail and tourism areas had been shrinking. Those that remain in business had become more competitive.

Over the past 25 years the sector had shifted away from the providing more expensive goods like fine china and crystal to items of lesser cost like T-shirts and souvenirs.

"There are no dramatically visible growth areas,'' Mr. Smith said. He added: "The staff are determining what business sectors we will be willing to assist. They will identify opportunities for our clients and for the bank.

Previously smaller clients were serviced along with everybody else. there needs were met only when they raised them. We will be getting more attention from us on a more proactive basis.'' The sign of success will be when the Business Banking Centre is able to pass the customer on to the bank's corporate division, which caters to larger clients.

Ms Michelle Khaldun