Press Releases
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 Boost Fund, a public-private partnership that provides low-interest loans to small businesses and nonprofits in Connecticut. This may interest you : Within the high-tech restructuring of Chuck E. Cheese. Applications are now being accepted for loans ranging from $5,000 to $500,000.
The program is aimed at helping small businesses and non-profits, especially those in low-income and historically underserved communities, with access to flexible working capital. The loans have a fixed, 4.5% interest rate and are available to eligible small and nonprofit businesses with operations in Connecticut that have 100 or fewer full-time employees and annual revenues of less than $8 million.
“We are excited to launch the Connecticut Small Business Boost Fund, a new partnership with private sector representatives and investors that will provide businesses and nonprofits with the working capital they need to grow and succeed,” Governor Lamont said. “The fund was established to support small business owners who may have faced barriers to access to financial aid and works with and through community lenders committed to equitable lending.”
The state is making an initial investment of $75 million in this public-private partnership, which aims to lend $150 million or more to eligible businesses and nonprofits. The goal is for the fund to be self-sustaining as private funds are invested.
Small businesses and nonprofits can apply online at CTSmallBusinessBoostFund.org, and if they qualify, they will be matched with a lender. Once matched, a participating lender will assist the business owner throughout the application process. This lending model has previously found success in programs based in California, New York, and Washington state.
The fund works with and through community development finance institutions (CDFIs) and lenders with decades of experience serving underserved and underserved communities. The following CDFIs are participating in the program:
It is managed by the National Development Council (NDC) and funded by Calvert Impact Capital. In addition to funding from the Connecticut Department of Economic and Community Development (DECD), the initial funding was provided by Citizens Bank, M&T Bank, and First Republic Bank.
“We see this program as a one-stop shop for small business owners,” DECD Commissioner David Lehman said. “What separates the Connecticut Small Business Boost Fund from other loan programs is that it provides support and guidance services, in addition to financial aid, that help put recipients on the path to success.”
“At M&T we recognize that small businesses are the backbone of our economy, especially in underserved and diverse communities,” said Michael Weinstock, regional president of M&T Bank in Hartford. “That’s why we’re proud to join the Connecticut Small Business Boost Fund to support small businesses and nonprofits that often lack access to affordable, flexible credit. Our focus as a community bank has always been on providing resources that empower and finance our customers. This partnership is another important step we are taking to advance this work. “
“As part of the Citizens’ Economic Opportunity Funds program, this effort will use the bank’s resources to help facilitate real and lasting success for small businesses and nonprofit organizations in the Connecticut community,” Reza Aghamirzadeh, director of community development at Citizens Bank, said. “Creating access to income and thereby improving opportunity for those in the communities we serve represents another step towards achieving the necessary change in a way that is more in line with our values.”
For more information and to apply, visit CTSmallBusinessBoostFund.org.
