A new loan program for minority and women-owned businesses in three towns in Connecticut that have been impacted by COVID-19 was announced on Tuesday.
State and local leaders announced the launch of the loan program for eligible businesses in Ansonia, Derby and New Haven.
The program is a partnership with the Community Foundation for Greater New Haven, HEDCO, Inc., the Amour Propre Fund and the City of New Haven.
HEDCO is expected to administer the program and will help businesses through the application process, as well as provide financial planning services, officials said.
Eligible businesses are minority- and women-owned with 20 or fewer employees, according to state and local leaders.
Officials said they are offering four-percent term loans of up to $25,000 with an assembled pool of $1.5 million. Eligible loans in good standing can be partially forgiven after one year.
Program officials said the loan will have 12 months of interest only and on the 13th month, it will be converted to interest and principal payment.
There is a one page application that can be found on HEDCO's website here. In order to qualify, officials said the business must be in good standing with the Dept. of Revenue Services.
Officials said the loans allow the businesses to be used for working capital, inventory, equipment or whatever they need.
They said the hope is to have the businesses come out of the pandemic more healthy than they went in.