Today, State Senator Will Haskell (D-Westport) supported the statewide launch of an emergency no-interest loan program for Connecticut small businesses and nonprofits impacted by COVID-19. Governor Ned Lamont announced the creation of the bridge loan program this morning, which will provide no-interest loans for businesses valued at up to $75,000.
“Over the last week, I’ve heard from dozens of small businesses that are struggling to stay afloat during this pandemic. I’m deeply concerned about the lasting impact that the Coronavirus will have on our local economy,” said Sen. Haskell. “Our state needed to step up and meet this challenge, helping the thousands of struggling entrepreneurs, and I am thankful that Governor Lamont and Department of Economic and Community Development Commissioner David Lehman are doing just that. This loan program will be a lifeline to small businesses and nonprofits who need it most. I look forward to helping my constituents apply for these zero interest loans.”
The Connecticut Recovery Bridge Loan Program will make $25 million available to Connecticut businesses and nonprofits with fewer than 100 employees to assist with cash flow. Loan amounts will be valued at the lesser of either three months of operating expenses or $75,000.
The loan program has a zero percent interest rate and carries a 12-month term with six-month extensions available upon request. Businesses must provide personal guaranty and credit scores. Approval is contingent upon a business being profitable prior to March 10, 2020. Businesses cannot have experienced adverse personal credit reports 60 days past due for the last six months. Ineligible companies include those involved in real estate, multi-level marketing, adult entertainment, cannabis and firearms.
Eligibility and application information can be found at ct.gov/coronavirus.