Startups and entrepreneurs wanted: An established program in New Britain is offering loans and lease rebates for fledgling businesses in the city’s downtown. More than $1 million is available as part of the city’s tax increment financing (TIF) program, with few applicants for the money so far, said Mayor Erin Stewart.
“New Britain has been working for years to try to get our downtown back to what it once was — a hub of mom-and-pop shops that really is a destination,” Stewart said. “The TIF program allows an opportunity that business owners haven’t had before to access capital in order to make it happen.”
The first — and so far only — beneficiary of New Britain’s TIF funding is the second location of a Berlin coffee house, Cafe Busy Bean. Opened in March on the ground floor of the police department building at Main and Chestnut streets, the cafe offers high-end coffee and layered European pastries.
Cafe owner Tigran Hovhannisyan borrowed about $100,000 from the TIF fund to buy equipment and prepare the space, formerly home to a Dunkin’ Donuts.
The city has deposited about $300,000 a year in the TIF revolving loan fund since 2017, Stewart said. With the coming budget allocation, the fund is expected to total $1.3 million by July 1.
But entrepreneurs should act fast: Jasko Development is eyeing the TIF account as a possible source of funding to help demolish the former Burritt Interfinancial bank building as part of a $13 million mixed-use project.
Jasko has a proven track record in the city and the Burritt project is seen as vital to revitalizing the urban core.
“This would be a development that would certainly transform the look of downtown New Britain,” Stewart said. Jasko has approached the committee managing TIF funds, she added.
With the Jasko request pending, the city is promoting a second program, commercial lease rebates to help early stage enterprises hang on through the first years in business.
Stewart cited the quick demise of multiple restaurants in recent years in prime locations on Main Street. “Nothing really seems to make it… they always talk about struggling with their lease payments,” she said. “This program is to help these businesses, give them a leg up to help make it through.”
Businesses must sign multi-year leases to be eligible for rebates, according to the mayor. The city wants to encourage established restaurants in particular to take advantage of the program and help bring New Britain back to life.
“Our residents are looking for local restaurants to support,” Stewart said. “We hope that we can help them make it through.”
