The state has launched an emergency program to help small businesses and non-profits that have been hurt by the COVID-19 pandemic and it will provide no-interest loans to help them during a difficult time.
Gov. Ned Lamont said Connecticut small businesses and nonprofits that have been negatively impacted by the coronavirus pandemic can apply for one-year, no-interest loans of up to $75,000, or three months of operating expenses, whichever is less.
The state’s Department of Economic and Community Development is administering the Connecticut Recovery Bridge Loan Program, which will make $25 million available to Connecticut businesses and nonprofits that have 100 or fewer employees.
“We know that our small businesses and nonprofits have been hit hard by the public safety measures put into place to prevent the spread of this disease,” Lamont said in a statement. “Owners are understandably worried about their business, their employees, and their future. This program was designed to provide immediate financial assistance to help these organizations maintain operations and get through this difficult time.”
The provisions and eligibility requirements include:
- Zero percent interest rate;
- 12-month term with 6-month extension per request;
- Personal guaranty and credit score required;
- Approval contingent upon business being profitable prior to March 10, 2020 and no adverse personal credit reports 60 days past due for the last 6 months; and
- Ineligible companies include those involved in real estate, multi-level marketing, adult entertainment, cannabis, and firearms.
All eligibility and application information can be found on the state’s COVID-19 website at ct.gov/coronavirus.
Many Connecticut businesses are closed to help prevent the spread of coronavirus and the Connecticut Department of Labor said unemployment claims during the coronavirus pandemic are at least 20 times higher than normal, according to department officials.
“We have been in close communication with our small business and nonprofit communities throughout this crisis and certainly understand their sense of urgency,” DECD Commissioner David Lehman said in a statement. “We believe this program provides the quick, short-term financial assistance they need to maintain operations and weather this storm.”