DECD Offers No-Interest Loans to Small Businesses and Nonprofits
NOTE: The state closed the initial round of applications for the CT Bridge Loans on March 27 and will not be accepting new applications at this time. The program was expanded to $50 million. Applications in progress can be completed within the seven day window allotted.
Join us on April 1 at 10 a.m. for updates on state and federal programs with David Lehman, Commissioner, DECD.
Small businesses and nonprofits can now apply for 0% interest bridge loans from the State of Connecticut through the Department of Economic and Community Development. This program offers up to $75,000 or 3 months of operating expenses in a one-year loan, with an option to request a 6-month extension.
The program is for CT-based businesses with under 100 employees, profitable and in good standing prior to March 10, 2020. Visit the DECD website at portal.ct.gov/DECD (choose Coronavirus Business Recovery). Eligibility details are available along with answers to frequently asked questions.
The program was introduced in a press conference on March 25 by David Lehman, Commissioner, DECD. His description of the program begins at 10:30 in the press conference video: https://portal.ct.gov/Office-of-the-Governor/News/Press-Releases/2020/03-2020/Governor-Lamont-Coronavirus-Update-March-25
Lehman also discussed the Paycheck Protection Program included in the $2 trillion stimulus package passed by the Senate and headed to the House for a vote on Friday. The proposed package includes $350 billion in federally secured loans including a Paycheck Protect Program that applies to businesses of up to 500 employees, or classified as small businesses under the U.S. Small Business Association.
These loans are also available to sole practitioners or members of the gig economy as well. These Federal loans will be subject to loan forgiveness when companies maintain their payroll for a period of eight weeks. More details on these loans will emerge in the coming days.
DECD has also set up a small business hotline that can answer specific questions 860-500-23333 or email the Joint Information Center at COVID19.JIC@ct.gov.