State launches no-interest small business recovery loans

From CBIA.

The state is offering short-term, no-interest bridge loans up to $75,000 to small businesses with less than 100 employees impacted by the coronavirus pandemic.

Connecticut Recovery Bridge Loan Program funding is available immediately through the Department of Economic and Community Development and underwritten by Connecticut Innovations.

Funds from the $25 million short-term emergency loan program will be allocated on a first-come, first-served basis.

Eligibility Requirements

  • To be considered for this program, a business or nonprofit must:
  • Have no more than 100 employees
  • Be in good standing with the Department of Revenue Services and DECD
  • Profitable prior to March 10, 2020—with no adverse personal credit reports 60 days past due the past six months
  • Not involved in real estate, multi-level marketing, adult entertainment, cannabis, or firearms
  • Not a state elected public official or state employee

Terms and Conditions

  • Loan maximum of (a) $75,000 or (b) three months operating expenses, whichever is less
  • 0% interest rate
  • 12-month term, with six-month extension available per request
  • Freely pre-payable
  • Working capital loan
  • Personal guarantee and credit score required

The Connecticut Department of Economic and Community Development (DECD) is accepting loan applications online.