Insights

To provide emergency cash flow relief to small businesses and nonprofits negatively impacted by the coronavirus, Connecticut is now offering qualifying businesses and nonprofit organizations with 100 or fewer employees access to no-interest loans of up to $75,000 or three months of operating expenses (whichever is lesser).

This $25 million short-term emergency loan program will be allocated on a first-come, first-served basis. The program will be administered by the Department of Economic and Community Development (DECD) and expedited with the administrative and underwriting support of Connecticut Innovations.

Eligibility

To be considered for this program, your business or nonprofit must:

• Have no more than 100 employees
• Be in good standing with the Department of Revenue Services (DRS) & DECD 
• Have been profitable prior to March 10, 2020—with no adverse personal credit reports 60 days past due during the past six months
• Not be involved in real estate, multi-level marketing, adult entertainment, cannabis or firearms; nor be a state elected public official or state employee

Terms and Conditions

• Loan maximum of lesser of (a) $75,000 or (b) three months operating expenses
• 0% interest rate
• 12-month term, with 6-month extension available per request 
• Freely pre-payable
• Working capital loan
• Personal guarantee and credit score required 

How to Apply

To apply for the Connecticut Recovery Bridge Loan Program, applicants must complete an application, which can be found here.

The following information will also be required:

• Project Financing Plan & Budget (form available on DECD website)
• 2019 Income Statement (or) Profit and Loss Statement 
• Internal Financial Statements (YTD)
• 3-month projected cash flow, demonstrating need
• Summary of adverse economic impact resulting from COVID-19
• Recent credit score report
• Applicant Structure Documents
• Personal Financial Statement
• Ownership Breakdown
• DRS Letter of Good Standing

Program Process

Upon completing the application and obtaining the required documentation, organizations can submit the information online, via email to decdctrecovery@ct.gov.

After the underwriting and due diligence process, if your loan application is approved DECD will:

• Issue a Letter of Intent, outlining the loan amount and terms
• Work with you to execute a Standard Assistance Agreement
• Ask you to complete ACH paperwork so that funds can be transferred by wire.

For additional information or questions, DECD has set up its Express Hotline at (860) 500-2333 or via email at decdctrecovery@ct.gov. Email is preferred due to high volume on phone lines.

For more Day Pitney alerts and articles related to the impact of COVID-19, as well as information from other reliable sources, please visit our COVID-19 Resource Center.

COVID-19 DISCLAIMER: As you are aware, as a result of the COVID-19 pandemic, things are changing quickly and the effect, enforceability and interpretation of laws may be affected by future events. The material set forth in this document is not an unequivocal statement of law, but instead represents our best interpretation of where things stand as of the date of first publication. We have not attempted to address the potential impacts of all local, state and federal orders that may have been issued in response to the COVID-19 pandemic.