Governor Lamont Announces New $150 Million Loan Program for Connecticut Small Businesses and Nonprofits

Press releases

07/25/2022

Governor Lamont Announces New $150 Million Loan Program for Connecticut Small Businesses and Nonprofits

Public-private partnerships support organizations in historically underserved communities

(Hartford, CT) – Governor Ned Lamont announced today Connecticut Small Business Development FundA public-private partnership that provides low-interest loans to small businesses and nonprofit organizations in Connecticut. Applications are now being accepted for loans ranging from $5,000 to $500,000.

The program aims to help small businesses and nonprofit organizations, particularly those in low-income and historically underserved communities, access flexible working capital. The loans are available to Connecticut small businesses and nonprofits with a fixed, 4.5% interest rate and 100 or fewer full-time employees and less than $8 million in annual revenue.

“We are excited to partner with private sector partners and investors to develop the Connecticut Small Business Acceleration Fund, which will provide companies and nonprofits with the working capital they need to grow and thrive.” Governor Lamont said.. “This fund was established to support small business owners who have previously faced barriers to access to financing and who are working with community lenders who are committed to fair lending practices.”

The state is making a $75 million seed investment in this public-private partnership with the goal of lending $150 million or more to qualified businesses and nonprofits. The goal is to make the fund self-sustaining by investing as much private money as possible.

Small businesses and nonprofits can apply online at CTSmallBusinessBoostFund.org, and if they are eligible, they will match with the lender. Once matched, the participating lender will assist the business owner in the application process. This loan model has already found success in programs established in California, New York and Washington state.

The Fund works with local Community Development Financial Institutions (CDFIs) and lenders with decades of experience serving historically underserved and underbanked communities. The following CDFIs participate in the program:

• come out
• Change capital
• HEDCO
• NDC Community Impact Loan Fund
• chase
• Southeast City Enterprise Region (Sector)

It is managed by the National Development Council (NDC) with funding from Calvert Impact Capital. In addition to funding from the Connecticut Department of Economic and Community Development (DECD), initial funding was provided by Citizens Bank, M&T Bank and First Republic Bank.

“We consider this program a one-stop shop for small business owners.” DECD Commissioner David Lehman said.. “The Connecticut Small Business Development Fund differentiates itself from other loan programs in that, in addition to financial assistance, it also provides support and guidance to help put recipients on the path to success.”

“At M&T, we recognize that small businesses are the backbone of our local economy, especially in underserved and diverse communities. said Michael Weinstock, Hartford regional president of M&T Bank.. “That’s why we’re proud to join the Connecticut Small Business Enhancement Fund to support small businesses and nonprofits that often don’t have access to affordable and flexible credit. Our focus as a community bank has always been to provide resources that empower our customers financially. This partnership is another step toward furthering that mission.” It is an important step.

“As part of the Citizens’ Economic Opportunity Fund initiative, this effort will leverage the bank’s resources to bring real and sustainable growth to small businesses and nonprofits in the Connecticut community. Reza Aghamirzadeh, Head of Community Development at Citizens Bank said.. “Creating access to capital and improving opportunities for people in the communities we serve represents one more step in making the necessary changes that are strongly aligned with our values.”

For more information and to apply, visit CTSmallBusinessBoostFund.org.

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