Press Releases
07/25/2022
Governor Lamont Announces New $150 Million Loan Program for Connecticut Small Businesses and Nonprofits
Public-private partnership will support organizations in historically underserved communities
(HARTFORD, CT) – Governor Ned Lamont today announced the launch of the Connecticut Small Business Recovery Fund, a public-private partnership that provides low-interest loans to Connecticut small businesses and nonprofits. Applications are now being accepted for loans ranging from $5,000 to $500,000.
The program aims to help small businesses and nonprofits, especially those in low-income and historically underserved communities, access flexible working capital. Loans have a fixed interest rate of 4.5% and are available to qualifying small businesses and nonprofits operating in Connecticut that have 100 or fewer full-time employees and annual revenues of less than $8 million. of dollars.
“We are excited to launch the Connecticut Small Business Boost Fund, a new collaboration with private sector partners and investors that will provide businesses and nonprofits with the working capital they need to grow and thrive.” , Governor Lamont said. “This fund was created to support small business owners who may have previously faced barriers accessing financial support and works with and through community lenders who are dedicated to fair lending practices.”
The state is making a foundational investment of $75 million in this public-private partnership, which aims to lend $150 million or more to qualifying businesses and nonprofits. The aim is for the fund to become self-sustaining as more private funds are invested.
Small businesses and non-profit organizations can apply online at CTSmallBusinessBoostFund.org, and if they qualify, they will be matched with a lender. Once matched, the participating lender will assist the business owner through the application process. This lending model has already found success in programs based in California, New York and Washington State.
The fund works with and through local community development financial institutions (CDFIs) and lenders who have decades of experience serving historically underfunded and underbanked communities. The following CDFIs participate in the program:
- Ascent
- Capital for change
- HEDCO
- NDC Community Impact Lending Fund
- Pursuit
- Southeast CT Enterprise Region (SeCTer)
It is administered by the National Development Council (NDC) with funding arranged by Calvert Impact Capital. In addition to funding from the Connecticut Department of Economic and Community Development (DECD), seed funding was provided by Citizens Bank, M&T Bank and First Republic Bank.
“We view this program as a one-stop shop for small business owners,” DECD Commissioner David Lehman said. “What sets the Connecticut Small Business Boost Fund apart from other loan programs is that it provides support and referral services, in addition to financial assistance, that help put recipients on the path to success. hit.”
“At M&T, we recognize that small businesses are the backbone of our local economies, especially in underserved and diverse communities,” Michael Weinstock, regional president of M&T Bank for Hartford, said. “That’s why we’re proud to join the Connecticut Small Business Boost Fund to support small businesses and nonprofits that too often don’t have access to affordable, flexible credit. Our Purpose as a Community Bank has always been about providing resources that financially empower our customers.This partnership is another important step we are taking to further this mission.
“As part of the Citizens’ Economic Opportunity Funds initiative, this effort will leverage the bank’s resources to help generate real and lasting progress for small businesses and nonprofits in the Connecticut community,” Reza Aghamirzadeh, community development manager at Citizens Bank, said. “Creating access to capital and thereby improving opportunities for members of the communities we serve represents one more step towards effecting needed change in a way that strongly aligns with our values.”
For more information and to apply, go to CTSmallBusinessBoostFund.org.
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