Connecticut Inner City Business Loan Guarantee Program

As part of the Governor's initiative, CEDF, in conjunction with the Department of Economic and Community Development (DECD), offers guarantees for small business loans in designated industry clusters located in Waterbury, Hartford, New Britain, Bridgeport, and New Haven. As part of this collaboration, CEDF provides the loans using more flexible criteria and the Department of Economic and Community Development provides a 30% guarantee. In addition to providing flexibility, the DECD guarantee allows CEDF to reduce the interest rate by one percentage point. The combination of the flexibility and reduced interest rate provides a direct benefit to the small business owner. This guarantee is for small businesses that would otherwise have difficulty obtaining traditional financing or need more flexible terms.

Product:

• loans $50,000 to $250,000
• term loans
• lines of credit
• free business consulting

Eligibility / Application Criteria:

• for profit businesses
• meets CEDF eligibility requirements (see requirements)
• must be in industry clusters identified by each city or serve these industry clusters
• benefit to the community
• completed business plan
• CEDF application
• reasonable ability to repay loan

Terms:

• term is tied to business cash flow
• no prepayment penalty

Uses:

• Working Capital
• Equipment or machinery
• Inventory
• owner occupied commercial real estate
• other legal purposes

Pricing:

• discounted fixed interest rate
• 1% application fee

Collateral:

• borrower(s) must sign personally
• pledge any assets
• 30% guarantee provided for eligible borrowers

Special benefits to borrower:

• provides 30% guarantee that serves as collateral
• lowers the interest rate by 1%

Contact: Nadine Cabrera
Phone (860) 249-3800, ext. 304

Micro Loan Guarantee Program for Women and Minority Business Owners

CEDF offers a special loan guarantee in conjunction with the Department of Economic and Community Development (DECD) to help women and minority owned businesses obtain flexible financing. This program is for start up businesses as well as existing businesses looking to expand. CEDF provides the loan and the Department of Economic and Community Development provides a 30% guarantee. This guarantee is particularly helpful to start up businesses that need a greater degree of flexibility in obtaining a loan. In addition, the small businesses get a reduction of 1% on their interest rate. This program has been so successful that CEDF and DECD are currently working on expanding the program.


Product:

• loans from $5000 to $50,000
• term loans
• can be used in conjunction with micro loans
• free business consulting

Eligibility / Application Criteria:

• for profit businesses
• must be 51% women or minority owned
• located in CEDF eligibility community (see list)
• benefit to the community
• business plan including financials
• CEDF application
• reasonable ability to repay loan

Terms:

• flexible terms
• No prepayment penalty

Uses:

• Working Capital
• Equipment or machinery
• Inventory
• other legal purposes

Pricing:

• 1% application fee
• discounted interest rate

Collateral:

• borrower(s) must sign personally
• pledge any available business or personal assets
• 30% guarantee provided for eligible borrowers

Special benefits to borrower:

• provides 30% guarantee that serves as collateral
• lowers the interest rate by 1%

Contact: Nadine Cabrera
Phone (860) 249-3800, ext. 304