Gov. Ned Lamont on Monday announced details of a new program that will provide low-interest loans to small businesses and nonprofits in Connecticut, particularly in low-income and historically underserved communities.
The public-private partnership, Small Business Boost Fund, will begin accepting applications for loans ranging from $5,000 to $500,000.
“This fund was established to support small business owners who may have previously experienced barriers to accessing financial support and works with and through community lenders that are dedicated to equitable lending practices,” Lamont said.
The loans have a fixed, 4.5% interest rate and are available to eligible small businesses and nonprofits in Connecticut that have 100 or fewer full-time employees and annual revenue of less than $8 million.
The state is making an investment of $75 million into the program. The goal is for the fund to become self-sustaining as more private funds are invested.
The effort is among several DECD initiatives under the Lamont administration to spur business growth.
“We consider this program to be a one-stop shop for small-business owners,” Lehman said. “What separates the Connecticut Small Business Boost Fund from other loan programs is that it offers support and guidance services, in addition to the financial assistance, that helps put recipients on the path to success.”
Small businesses and nonprofits can apply online at CTSmallBusinessBoostFund.org, and if they qualify, they will be matched with a lender. Once matched, the lender will assist with the application.
Lamont was joined for the announcement by Connecticut Department of Economic and Community Development Commissioner David Lehman, DECD Deputy Commissioner Paul O. Robertson, Kathy Saint, president of the manufacturing company Schwerdtle; David Marsh, president and CEO of the National Development Council; Frank Micalizzi, CT regional president and head of commercial banking for M&T Bank and Howard K. Hill, co-chair of the state’s Minority Business Initiative.
