Connecticut Recovery Bridge Loan Program
On March 26, 2020, Governor Lamont launched an Emergency No-Interest Loan Program (the “Program”) to provide financial relief to Connecticut Small Businesses and non-profits that have been adversely impacted by the Coronavirus pandemic. The Program is administered by the Department of Economic and Community Development (DECD) and is funded by a grant of $25 million. The grant will be dispersed through the Program on a first-come first-served basis. All loans made under the Program will be disbursed in one single payment.
To be eligible, the entity must meet the following three criteria:
- Employ 100 or less employees; and
- Be in good standing with the Department of Revenue Services (DRS) & DECD; and
- Been profitable prior to March 10, 2020 – with no adverse personal credit reports 60 days past due the past six months
The following kinds of businesses are precluded from obtaining loans under the program: firearms, cannabis, adult entertainment, real estate, and multi-level marketing.
Additionally, state employees and elected public officials are ineligible for loans under the Program.
What can this loan do for me?
The working capital loans available under the Program are for the lesser of $75,000 or three-months operating expenses (DECD reserves the right to determine the loan amount). Loans under the Program will be at 0% interest and will be freely pre-payable. However, the loans will require a personal guarantee and the production of a credit score for review. The term on the loan will be twelve months with the option to request an extension of six months. Notably, expenses incurred before March 10, 2020 can be reimbursed with sums provided through the Program.
While the DECD is not presently accepting applications, applicants will need to produce the following documents:
- 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
How Do I Submit my Application?
Applications are not presently being accepted. Prospective applicants should check here on a regular basis to determine whether DECD is once again accepting applications.
How Long Do I Have to Wait?
DECD projects a turnaround time on applications (once they become available again) of 30 days but reserves the right to extend that timeframe out to 60 days or more. Upon review of the application, 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