Connecticut on Monday launched a new loan program that aims to assist small businesses and nonprofits throughout the state.
The agreement is a new “public-private partnership that provides low-interest loans” to various organizations, with the goal of growing the two sectors in “low-income and historically underserved communities.”
“We’re thrilled to launch the Connecticut Small Business Boost Fund, a new collaboration with private sector partners and investors that will provide companies and nonprofits the working capital they need to grow and thrive,” Governor Lamont said. “This fund was established to support small business owners who may have previously experienced barriers to accessing financial support and works with and through community lenders that are dedicated to equitable lending practices.”
According to Governor Lamont’s office, each loan will have a 4.5 percent interest rate and will only be available to organizations with “operations in Connecticut that have 100 or fewer full-time employees and annual revenues of less than $8 million.”
“What separates the Connecticut Small Business Boost Fund from other loan programs is that it offers support and guidance services, in addition to the financial assistance, that helps put recipients on the path to success,” added DECD Commissioner David Lehman.
Eligible loans range from $5,000 to $500,000. Individuals can apply online and will be matched with a lender in the state.
The state will contribute $75 million to the partnership.
“At M&T we recognize that small businesses are the backbone of our local economies, especially in underserved and diverse communities,” Michael Weinstock, M&T Bank regional president for Hartford, said. “That’s why we’re proud to be joining the Connecticut Small Business Boost Fund to support small businesses and nonprofits that too often lack access to affordable, flexible credit. Our focus as a community bank has always been on providing resources that financially empower our customers. This partnership is another important action we are taking to further that mission.”
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Cooper Moran is a reporter for The Connecticut Star and The Star News Network. Email tips to [email protected].
Photo “Coffee Shop” by Joshua Rodriguez.
