A 3/26/20 Message from David Lehman, Commissioner of the Connecticut Department of Economic and Community Development:
The small-business loan program Governor Lamont and I mentioned in our conference call a few days ago is here.
We have launched our emergency relief funding for nonprofits and small businesses impacted by the coronavirus. The Connecticut Recovery Bridge Loan Program will provide short-term loans to businesses and nonprofits with fewer than 100 employees. 0% interest for up to 12 months. Under this $25 million program, they can borrow up to $75,000.
We want to make this process as quick and easy as possible. You can find the one-page application, as well as the approval criteria and other important information by clicking here. DECD will administer the program with administrative and underwriting support from Connecticut Innovations.
We understand the challenges businesses face in these uncertain times. The survey we conducted with AdvanceCT and the Connecticut Business & Industry Association found that the most critical need for business is assistance with cash flow, with 82% of respondents expecting a drop in revenue due to COVID-19.
We’ll keep you updated as we take further actions. In the meantime, visit the state’s coronavirus website for the latest news about our support efforts. If you have any questions about this loan program call 800-500-2333 or email decdCTrecovery@ct.gov.
Sincerely,
David Lehman, Commissioner
david.lehman@ct.gov, (860) 500-2310
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Connecticut Recovery Bridge Loan Program
Overview
FAQs
Provided by: Connecticut Department of Economic and Community Development
Overview
To provide emergency cash flow relief to small businesses and nonprofits negatively impacted by the coronavirus, Connecticut is now offering qualifying organizations with 100 or fewer employees access to no-interest loans.
Under the Connecticut Recovery Bridge Loan program, a qualifying business or nonprofit organization can apply for a loan of up to $75,000 or three months of operating expenses (whichever is lesser).
This $25 million short-term emergency loan program will be allocated on a first-come, first-served basis. The program will be administered by the Department of Economic and Community Development (DECD) and expedited with the administrative and underwriting support of Connecticut Innovations.
Eligibility
To be considered for this program, your business or nonprofit must:
- Have no more than 100 employees
- Be in good standing with the Department of Revenue Services (DRS) & DECD
- Have been profitable prior to March 10, 2020— with no adverse personal credit reports 60 days past due the past six months
- Not be involved in real estate, multi-level marketing, adult entertainment, cannabis or firearms; nor be a state elected public official or state employee
Terms & Conditions
- Loan maximum of (a) $75,000 or (b) three months operating expenses, whichever is less
- 0% interest rate
- 12-month term, with 6-month extension available per request
- Freely pre-payable
- Working capital loan
- Personal guarantee and credit score required
How to Apply
To apply for the Connecticut Recovery Bridge Loan Program, applicants must complete an application.
The following information will also be required:
- Project Financing Plan & Budget
- 2019 Income Statement (or) Profit and Loss Statement
- Internal Financial Statements (YTD)
- 3-month projected cash flow, demonstrating need
- Summary of adverse economic impact resulting from COVID-19
- Recent credit score report
- Applicant Structure Documents
- Personal Financial Statement
- Ownership Breakdown
- DRS Letter of Good Standing
Program Process
Upon completing the application and obtaining the required documentation, organizations can submit the information online, via email to decdctrecovery@ct.gov.
After the underwriting and due diligence process, if your loan application is approved DECD will:
- Issue a Letter of Intent, outlining the loan amount and terms
- Work with you to execute a Standard Assistance Agreement
- Ask you to complete ACH paperwork so that funds can be transferred by wire.
For details on the application process, please:
View Frequently Asked Questions
Contact
For additional information or questions, contact the Express Hotline at (860) 500-2333 or via email at decdctrecovery@ct.gov. Email preferred due to high volume on phone lines.