Small businesses will be able to claim credit when importing items for sale, Minister of Home Affairs Michael Fahy announced yesterday.

The Bermuda Economic Development Corporation, in partnership with HM Customs, has allocated $200,000 in funds annually to be claimed by small firms — assisting them when importing goods for retail sale.

Starting on September 1, the programme will allow businesses to apply for a maximum of $10,000.

Sen Fahy said: “This government remains committed to our Island’s small businesses and ensuring not only that they succeed, but that they thrive.

“I am thrilled to be here today to announce an exciting new initiative which will undoubtedly greatly assist many businesses in Bermuda.

“BEDC, in partnership with HM Customs, has allocated $200,000 in funds annually to be used to facilitate lines of credit in amounts up to a maximum of $10,000 to assist business in importing goods for retail sale on the Island.

“What that means is that the BEDC will offer a 100 per cent guarantee letter of credit to assist qualified applicants in securing an HM Customs line of credit to defer payment of duty.”

The initiative is a pilot programme that will be assessed after one year.

Sen Fahy said it was developed after a survey showed that small businesses were in need of lines of credit to facilitate the importation of retail goods.

“However, financial institutions were requiring letters of credit to be secured by cash, which was prohibitive to most small businesses,” he said.

The letter of credit is designed to help start-up and existing small businesses with inventory purchases directly related to increasing sales or services, Sen Fahy said.

“This government is serious about encouraging the growth of small businesses with the BEDC providing tangible support and advice,” he added. “We will continue to ensure that local economic development is a priority, by putting businesses and entrepreneurs first and creating sound, progressive policies for their success.”

There is a $300 application fee for small businesses but $150 will be refunded if the application is unsuccessful. There is a $50 application fee for Economic Empowerment Zone businesses or vendors and there will be no refund if the application is unsuccessful.

• For more information, call the BEDC on 292-5570 or e-mail them at info@bedc.bm