Connecticut waterways may be safer from biomedical waste, thanks to an innovative Community Economic Development Fund small business loan guarantee program. CEDF, with its loan-program partners, Connecticut’s Department of Economic and Community and the City of West Haven have guaranteed a small business loan to a West Haven company that stems improper disposal of needles and prescription drugs.
West Haven’s Pathacura removes area medical waste from health care facilities safely and with a dedication to protecting one of the state’s most precious assets, its water. “Pharmaceuticals and personal health care products in the water are a growing national concern, and it’s important that Connecticut’s water is protected from pollutants and chemicals,” says Pathacura’s Michael Mongillo.
Mongillo’s father started Pathacura 15 years ago. The son’s been growing the business despite difficult economic conditions. Even as the recession deepened, Pathacura’s volume spiked with H1N1 testing and vaccinations. “Pathacura’s credit needed development, but we were too small a company to go to a bank for funding,” he says.
Mongillo heard about CEDF’s micro-finance loan guarantee program at a Rotary Club meeting. CEDF, with the Department of Economic and Community Development and cities of Hartford, Stamford, Bridgeport and West Haven, created the program to mitigate the risk of eligible small businesses. The cities support the small loans with 30 percent guarantees. The program is also partially funded by the Small Business Administration.
Pathacura is using the loan to expand its medical hazardous remediation work for local businesses and public facilities.
“The guarantee programs with our partners enhance CEDF’s ability to support small business, particularly start-up or at-risk business and those with little or no collateral,” says Donna Wertenbach, CEDF President and CEO. She noted that CEDF is able to make these loans because 21 banks and other institutions have invested in CEDF’s small-business, high-risk loan pool.”
If you are a small business in Connecticut and would like more information on how CEDF can help you grow your business, please call our offices at 203-235-2333 ext. 2040.
