Travis Simms

Good News: Relief for Small Businesses and Non-Profits

Yesterday afternoon, Governor Lamont announced that his administration has launched a zero-interest loan program to bring relief to Connecticut small businesses and nonprofits that have been impacted by COVID-19.

The Connecticut Recovery Bridge Loan Program will be administered by the Department of Economic and Community Development and will make $25 million available to businesses and nonprofits in the state that have fewer than 100 employees.

Eligibility for the Loan

• Have no more than 100 employees
• Be in good standing with the Department of Revenue Services & 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

Needed Application Materials

• 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

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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 additional information or questions, visit the website for FAQs, Express Hotline at (860) 500-2333 or via email at decdctrecovery@ct.gov. Email or website are preferred due to high volume on phone lines.

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In addition, the federal government is working on a stimulus package that includes help for small businesses and workers to help Americans through this crisis.

U.S. Senate Democrats fought for a bipartisan, robust third COVID-19 bill that will immediately bolster our health care response and our economy. The $2 trillion investment offers stronger worker protections, a Marshall Plan for our hospitals, and much more.

• Unemployment Insurance ($260 billion)
• Marshall Plan For Our Health System ($150 billion)
• Robust Worker and Transparency Protections on Government Loans
• Small Business Rescue Plan ($377 billion)
• Protected Over 2 Million Aviation Industry Job
• Increased Direct Payments to Working Americans
• State and Local Coronavirus Expenditures Fund ($150 billion)
• Emergency Appropriations ($330 billion, including $100 billion for hospitals and providers mentioned above)
• Student Loan Relief

I will be sharing more information on this plan as it becomes available. For more information, see the initial summary.