COVID-19 Relief for Small Businesses and Non-ProfitsMarch 26, 2020
Good News: Relief for Small Businesses and Non-Profits
Yesterday afternoon, Governor Lamont announced that his administration has launched a zero-interest loan program to bring relief to Connecticut small businesses and nonprofits that have been impacted by COVID-19.
The Connecticut Recovery Bridge Loan Program will be administered by the Department of Economic and Community Development and will make $25 million available to businesses and nonprofits in the state that have fewer than 100 employees.
Eligibility for the Loan
- Have no more than 100 employees
- Be in good standing with the Department of Revenue Services & 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
Needed Application Materials
- Project Financing Plan & Budget
- 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
Upon completing the application and obtaining the required documentation, organizations can submit the information online, via email to firstname.lastname@example.org.
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, visit the website for FAQs, Express Hotline at (860) 500-2333 or via email at email@example.com. Email or website are preferred due to high volume on phone lines.
In addition, the federal government is working on a stimulus package that includes help for small businesses and workers to help Americans through this crisis.
U.S. Senate Democrats fought for a bipartisan, robust third COVID-19 bill that will immediately bolster our health care response and our economy. The $2 trillion investment offers stronger worker protections, a Marshall Plan for our hospitals, and much more.
- Unemployment Insurance ($260 billion)
- Marshall Plan For Our Health System ($150 billion)
- Robust Worker and Transparency Protections on Government Loans
- Small Business Rescue Plan ($377 billion)
- Protected Over 2 Million Aviation Industry Job
- Increased Direct Payments to Working Americans
- State and Local Coronavirus Expenditures Fund ($150 billion)
- Emergency Appropriations ($330 billion, including $100 billion for hospitals and providers mentioned above)
- Student Loan Relief
I will be sharing more information on this plan as it becomes available. For more information, see the initial summary.