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Governor Lamont Announces New $ 150 Million Loan Program for Connecticut SMEs and NonProfit Organizations

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press release

Governor Ned Lamont

July 25, 2022

Governor Lamont Announces New $ 150 Million Loan Program for Connecticut SMEs and NonProfit Organizations

Public-private partnerships support organizations in communities that are historically underserved

(Hartford, Connecticut) – Governor Ned Lamont today Connecticut SME Boost FundA public-private partnership that provides low interest rate loans to SMEs and nonprofits in Connecticut. Loans in the range of $ 5,000 to $ 500,000 are currently being accepted.

The program aims to help small businesses and nonprofits, especially those in low-income and historically poorly serviced communities, have access to flexible working capital. The loan interest rate is fixed at 4.5% and is available to qualified SMEs and nonprofits with less than 100 full-time employees and less than $ 8 million in annual revenue in Connecticut.

“We are excited to launch the Connecticut Small Business Boost Fund, a new collaboration with private sector partners and investors, needed for businesses and nonprofits to grow and prosper. We will provide you with working capital. ” Governor Lamont said.. “This fund was established to help small business owners who may have previously experienced barriers to access to financial support, working with and through community lenders dedicated to equitable lending practices. I am active. “

The state has made a $ 75 million base investment in this public-private partnership aimed at lending more than $ 150 million to qualified businesses and nonprofits. The goal is for the fund to become self-sufficient as more private funds are invested.

SMEs and nonprofits can apply online. CTSmallBusinessBoostFund.org, If qualified, will be matched against the lender. If matched, the participating lenders will assist the employer throughout the application process. This lending model has previously been successful in programs based in California, New York and Washington.

The fund works with local Community Development Financial Institutions (CDFIs) and lenders, who have decades of experience servicing underfunded and bank-deficient communities. The following CDFIs are participating in the program.

  • Ascendas
  • Capital for change
  • HEDCO
  • NDC Community Impact Loan Fund
  • Pursuit
  • Southeastern CT Enterprise Region (SeCTer)

It is managed by the National Development Council (NDC) with funding arranged by Culvert Impact Capital. In addition to funding from the Connecticut Department of Economic and Community Development (DECD), initial funding comes from Citizens Bank, M & T Bank, and First Republic Bank.

“We consider this program to be a one-stop shop for small business owners.” DECD Commissioner David Lehman said.. “What sets the Connecticut Small Business Boost Fund apart from other loan programs is that it provides financial support, as well as support and guidance services that help recipients succeed.”

“M & T recognizes that SMEs are the backbone of the local economy, especially in poorly serviced and diverse communities.” Michael Waynestock, Regional President of M & T Bank, Hartford, said:.. “That’s why we’re proud to be part of the Connecticut SME Boost Fund to support SMEs and nonprofits that often don’t have access to affordable, flexible credit. Our focus as a community bank. Has always been to provide our customers with financially empowering resources. This partnership is another important action we are taking to drive that mission. “

“As part of the Citizen’s Economic Opportunity Fund Initiative, this effort will help leverage banking resources to promote true lasting progress for SMEs and nonprofits in the Connecticut community.” Reza Aghamirzadeh, Head of Community Development at Citizens Bank, said:.. “Creating access to capital and thereby improving the opportunities for people in the communities we serve represents a further step towards achieving the necessary changes in a way that is strongly in line with our values. I am. “

For more information and to sign up, please visit: CTSmallBusinessBoostFund.org..

twitter: @GovNedLamont
Facebook: Governor’s Office of Neddramont

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