Butterfield Bank has pledged to pump $15 million into financing the commercial and residential projects in the Economic Empowerment Zone (EEZ).

The bank revealed at a press conference yesterday that the money will be handed out to qualifying businesses and residents of the EEZ via preferential rates and terms for small business, commercial, home equity and historic home loans.

At the same meeting Finance Minister Paula Cox talked about her future plans for the EEZ and what has been achieved to date.

Alan Thompson, Butterfield Bank's president and CEO, said the purpose of the loans was to put something back into the community.

"For Butterfield, it remains as important as ever to maintain our focus on helping to build a healthy, well-educated and inclusive community," he said.

"Today's announcement follows a commitment of $2.5 million by Butterfield in April 2007 for lending to qualifying small construction contractors.

"This latest initiative is designed to assist entrepreneurs in North Hamilton and we are pleased to announce this new package of incentives and preferential borrowing rates."

He said that the commercial loans would inject capital directly into North Hamilton's fledgeling industries, while the home loans would revitalise and conserve the existing buildings in the area.

Ms Cox, who was hosting the meeting in conjunction with the Small Business Development Corporation (BSBDC) and the Uptown Market Association, outlined the steps taken to make the EEZ become a reality starting in 2006 with the BSBDC getting the Human Rights Commission's consent for business and property owners in the area to receive preferential treatment and join a special programme under the Human Rights Act, thus opening the door for better borrowing rates from lending institutions and tax incentives.

The BSBDC's budget was then boosted to help with access to funding, financing and support services, with Butterfield Bank and the Bank of Bermuda/HSBC also increasing its guarantee capacity, as the BSBDC and the Uptown Market Association joined forces to set up and define the key strategies to realise the empowerment of the zone and its constituents.

Ms Cox also implemented payroll tax incentives for new start-up businesses that register with the BSBDC and locate themselves in the EEZ and handed the Uptown Market Association and Youth on the move $250,000 each to fund their plans to bolster and re-energise the zone.

She said that during the present Budget year, the BSBDC was given $200,000 to assist both existing and new entrepreneurs based in the area with grants and no-interest loans of a maximum of $10,000 each towards small capital expenditure funding, professional management, marketing, business planning and accounting services and working capital financing.

"With this plan and the guidelines and the accompanying regulations presently being drafted both commercial and residential property and business owners will be incentivised and encouraged to develop, refurbish and renovate properties, enabling the North East Hamilton EEZ to sparkle and be a beacon for not only economic activity, but also healthy community life," she said.