No-Interest Loans Available for Small Businesses and Nonprofits (Updated)

Guide to Small Business Support during COVID-19

The Connecticut Recovery Bridge Loan Program offers 0% interest loans to small businesses and nonprofits negatively impacted by the COVID-19 measures.

Under the Connecticut Recovery Bridge Loan program, a qualifying business or nonprofit organization can apply for a loan 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 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 & Conditions
• Loan maximum of (a) $75,000 or (b) three months operating expenses, whichever is less
• 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

To learn more about the DECD Bridge Loan program, click here.

To start your application, click here.

For additional information or questions, contact the Small Business Express Hotline at (860) 500-2333 or via email at decdctrecovery@ct.gov. Emails are preferred as there are a high volume of calls.

Visit ChamberECT.com/Coronavirus-updates for links to federal and state resources, blogs and information.


Please see the following announcement detailing DECD’s response to the demand by Connecticut businesses for the Connecticut Recovery Bridge Loan Program. DECD will double to amount of available funding to $50 million while it halts the acceptance of applications at 6 PM tonight.

FROM DECD COMMISSIONER DAVID LEHMAN:

At 6 p.m. today (March 27), DECD will stop accepting applications for the Connecticut Recovery Bridge Loan program. We have seen significant demand for the program, receiving over 4,000 applications since the program went operational yesterday morning. Within the last 24 hours, DECD, along with our partner Connecticut Innovations, has added additional staff to process applications for this loan program. In addition, we are doubling the funding in the program to $50 million.

We will continue to monitor this rapidly evolving situation and keep in close contact with our small business and nonprofit partners as they grapple with the effects of this pandemic on their operations and employees.

We feel it is prudent to hit pause and stop taking more applications right now to ensure we can process the current queue efficiently and get this much needed money out the door as quickly as possible. We want to be fair to all applicants and taking more requests would not be right.

We encourage businesses to apply for SBA disaster assistance loans here. You can find out about state business resources on the state’s coronavirus website. In addition, details on the forthcoming federal stimulus, which will provide direct assistance to small business and individuals, can be found here.

Our staff will continue to assist clients in need and connect them with the other state and federal resources that are currently available. Inquiries should be sent to DECD.COVID19@ct.gov.

In this time of constant information flow, please contact seCTer at your convenience, or refer your constituents to us, with questions regarding economic development, small business lending and/or procurement technical assistance.

Be well and enjoy your weekend.

Melinda Wilson
Assistant Director of
Economic Development
SE CT Enterprise Region
19 B Thames Street
Groton CT 06340
(860) 437-4659