it struggled in the recession.

Bermuda Small Business Development Corporation chairman Mr. Craig Christensen said the Corporation's next annual report should show an improvement in the health of companies it assisted.

Mr. Christensen, appointed chairman on January 1, said the 1993 annual report should be available in less than a month.

The report will reveal how much, if any, money was paid out to banks in guarantees compared to the $66,848 lost on four 1992 guarantees and the $109,026 lost on five 1991 guarantees.

Both of those reports were tabled in the House of Assembly last Friday.

"Essentially things have improved for small business, not overwhelmingly but somewhat,'' commented Mr. Christensen.

Mr. Christensen said, compared to the numbers from 1991 and 1992, "things are slowly turning around'' for Bermuda's small business sector. And he predicted results from 1994 "are looking more optimistic''.

In the Senate last week, Government Sen. Yvette Swan reported that 29 guarantees totaling $710,500 had been issued by the Corporation in the seven-month period ending May, 1993.

According to the last two annual reports, many small companies were carrying unacceptably high levels of debt in 1991 and 1992.

Those annual reports indicated many Bermuda small businesses lacked adequate financial records and other documents.

"Many small businesses experienced financial difficulty because of falling revenues and a failure to curb overhead expenses commensurate with declining income,'' the report said.

Bermudian entrepreneurs are often unfamiliar with the management techniques that can be employed to improve the condition and prospects for an enterprise in distress,'' according to the 1992 report.

Other small business weaknesses cited in the 1992 report included: No formal business plans in place resulting in entrepreneurs not being aware of their markets, customer profiles, and competition advantages or disadvantages: No strategies to improve or retain their market share; and High levels of debt which were often beyond their ability to service.

The 1992 reports also said more than 400 people, representing more than 100 different types of businesses sought advice and other assistance from the (BSBDC) during the fiscal year -- almost twice the number of client requests handled in 1991.

The reports also described how the Corporation worked with banks and other financial institutions to restructure businesses experiencing difficulty meeting financial obligations.

This included a guarantee programme which provide financial support to small enterprises by providing partial guarantees to banks for loans to borrowers who would not qualify for financing under the banks' usual criteria.

In 1992, 21 loans were issued to small businesses, amounting to $1,031,442 while $344,000 in guarantees were issued compared to 20 loans worth $869,000, with $329,500 in guarantees issued in 1991.

The report states that of 21 loans granted in 1992, the Corporation was asked to pay four guarantees totaling $66,848. The Corporation is making efforts to have these guarantees repaid.

Since 1981, the corporation has loaned $11,788,660 and issued guarantees worth $344,000.

Banks use BSBDC guarantees in situations believed to be of significant risk, usually where the borrower has insufficient capital available to support their loan request. Grants from Government cover any shortfall in the Corporation's operation. Payment on defaulted guarantees are included in these grants.