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March 26, 2020

CT airs full details of $25M small biz bridge-loan program

HBJ File Photo Connecticut state Capitol in Hartford.
By Greg Bordonaro

The Department of Economic and Community Development has announced the terms of an emergency bridge loan program meant to help small businesses survive until they can regrow their revenue or access other financial loans and aid.

The Hartford Business Journal outlined the program on Tuesday, ahead of Gov. Ned Lamont’s announcement Thursday morning.

As expected, the maximum loan size will be $75,000 and loans will carry a 0% interest rate. DECD has upped the size of the overall loan pool, which was previously expected to be $20 million, but will instead be $25 million.

Eligible Connecticut businesses must have 100 or fewer employees and must have been profitable prior to March 10, with no adverse personal credit reports 60 days past due for the last six months. Borrowers must make personal guarantees for the loans, and a credit score is required.

In addition, no real estate, multi-level marketing, adult entertainment, cannabis or firearms companies will receive the loans, DECD said.

The loans will have a term of 12 months, with the possibility for a six-month extension.

Applications and further information about requirements for the Connecticut Recovery Bridge Loan Program can be found here.

The Connecticut Business & Industry Association heralded the new program Thursday, saying it would provide for "much needed liquidity."

"Small businesses and their employees are bearing the brunt of this severe economic downturn," CBIA CEO Joe Brennan said. "Putting cash in their hands to pay their employees and their bills for several months will hopefully allow them to stay in business until the crisis is over."

“It’s clear the state’s economy will take a major hit and we will continue working with the Lamont administration and the legislature to provide all possible resources and assistance," he added.

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