The Bermuda Economic Development Corporation (BEDC) will continue to support entrepreneurs despite a decrease in Government grants, according to Junior Home Affairs Minister Sylvan Richards

The 2015/16 Budget cut the Government grant to the quango by more than 10 per cent, from $1.53 million to $1.35 million. However, the Corporation was able to carry over $116,500 from last year.

Delivering the Budget brief, Mr Richards said that the BEDC last year extended new loan guarantees to 12 businesses, increasing the guarantee portfolio to support 58 different businesses.

He said that eleven of the loans in the portfolio were on the Corporation’s watch list as of the end of January, but BEDC officers are in regular contact with the clients to provide business advice and counselling to reduce the risk of the loan being demanded.

“These mitigation practices has resulted in BEDC paying out on only one called guarantees in 2014 in the amount of $79,039, which was an exceptional feat given the challenging economic climate,” he said. “In 2014, six of the loan guarantees extended to local businesses were successfully satisfied with the guarantee certificates returned to BEDC by the financial institutions.”

While he said that given the slow speed of the economic recovery, it is likely that some loans will be called in over the coming year, leaving the BEDC to pay out some guarantees, but he stressed the value of the programme.

“Through the loan guarantee programme, clients have been given the opportunity to participate in Bermuda’s commercial marketplace,” he said. “It is therefore vital that the BEDC continues to provide the necessary support in order to foster economic stability and growth in Bermuda’s local commercial sector.”

Updating the House on the Economic Empowerment Zone scheme, Mr Richards said 24 new businesses opened their doors in the Island’s three EEZs, creating 64 new jobs.

The Junior Minister also noted the Corporation’s efforts help support business owners and entrepreneurs develop though its Entrepreneurship Course, and said that this Spring, the BEDC will introduce the Ice House Entrepreneurship Programme to Bermuda.

“Inspired by the life story of Pulitzer nominee Clifton Taulbert, the Ice House Entrepreneurship Programme is a powerful learning programme designed to educate and engage participants in the fundamental aspects of an entrepreneurial mindset and the unlimited opportunities it can provide,” Mr Richards said. “The overall objective is to empower learners by exposing them to entrepreneurial thinking while immersing them in real-world entrepreneurial experiences.”

In the coming year, he said the quango intends to strengthen and develop the vendor market and vendor sector through introducing modern legislation, create a public interface for the Business Register; develop alternate financing options for BEDC clients; and help facilitate opportunities for small and medium-sized businesses to take advantage of America’s Cup 35 business opportunities.

“We have been gratified to see the level of enthusiasm and the entrepreneurial spirit demonstrated by existing business owners and newly introduced business owners in Bermuda,” Mr Richards said. “BEDC officers will continue to provide tailored and bespoke services to its customers to ensure local business success.

“This will consist of on-site business and counselling support for the loan guaranteed clients, hands on support for clients in the three EEZs, as well as services to newly-established or struggling medium-sized businesses.”