Eastern CT Segmented Loan Pool

In 2002, CEDF worked with Representative Diana Urban to expand its service area to include low/moderate income individuals throughout the state. With this change, the idea of an Eastern Connecticut segmented loan fund was born. Since then, CEDF has been working with Banking Commissioner John Burke, the banking community, Governor Rell, the Office of Policy Management, and several legislators to create the specific structure and resources of the program. In 2005, this program came to fruition with the approval of $2 million in State bond funds that served as a match for private sector investments. The Eastern CT Segmented Loan Fund was finalized in 2005 with $4 million; $2 million in State bond funds administered by DECD and $2 million in private sector investments. CEDF is very pleased to welcome 7 new member investors as part of this initiative. Taking the lead from the beginning for the private sector was the President of Dime Bank, Jim Cronin. With his constant and valuable assistance, the Savings Institute, ChelseaGroton, Jewett City and Eastern Federal Banks all joined the CEDF family. This brought the total number of private sector investors to 18. Liberty Bank, an existing investor, also made a second investment in CEDF, designated for this pool. Of special significance was the addition of the Mohegan Indian Tribe as an investor, making them the first non-bank private sector investor in the LLC1. Particularly rewarding was the response and interest of the small business community in participating in this new resource. Even prior to the official launch, CEDF received several requests for loan applications, and by the end of the year had approved and booked $785,000 in loans. CEDF looks forward to working with all our investors, DECD, and the numerous referral sources in getting these funds on the street to help start and grow small business in Eastern Connecticut. CEDF is very grateful to Jim Cronin and Dime Bank for all their support and guidance, to Commissioner Burke, and to the State of Connecticut, without whom this project would never have been so successful. Management and representatives from the Mohegan Indian Tribe.

Microenterprise Resource Group - MERG

The Microenterprise Resource Group (MERG) is a statewide networking organization whose mission is to strengthen the resources for microenterprise in the state of Connecticut through cooperation, advocacy and education. Several statewide microenterprise organizations have been meeting informally for a year to create the format and guidelines for this new resource. CEDF was joined by the Connecticut Community Investment Corporation as co founders. In 2005 MERG was officially launched as a membership organization. Any not for profit organization and any microenterprise business is welcomed as a member. During the first year, several new initiatives were launched. These included a statewide training calendar, a directory of microenterprise organizations, a legislative tracking system of bills relevant to small businesses, and an advocacy event at the Legislative Office Building (LOB) promoting the value of microenterprise to the economy of Connecticut. The first LOB event was a resounding success. It was sponsored by CEDF, the Connecticut Community Investment Corporation (CTCIC) and the Connecticut Small Business Development Center (CSBDC). It was kicked off with a week long pictorial display of microenterprise from around the state, which hung in the entrance of the cafeteria in the LOB. This was followed by a three day manned extensive display of relevant facts and faces of microenterprise, coupled with a table exhibiting products made by microenterprises in Connecticut. This exciting week culminated in a reception with Governor Rell and Comptroller Wyman as speakers and over 400 microenterprises and legislators attending. A brochure was later distributed to all legislators summarizing the statistics on microenterprise. Due to the success of this event and at the request of the LOB and others, this event will again be repeated in 2006 with expanded information. The launching of MERG and coordinated efforts of the microenterprise arena was made possible by a very generous grant from the Dick Resch family. All MERG members are very grateful to the Resch Family for their support.

New City of Hartford Guarantee Program

CEDF officially launched a new guarantee program in partnership with the City of Hartford, People’s Bank and the Parkville Business Association. This was the redirecting of an existing program between the City and People’s Bank. With the new Parkville Guarantee Program, People’s Bank made an additional investment of loan capital that CEDF matched, the City allocated $250,000 in CDBG funds to be used as loan guarantees and administrative funds and CEDF assumed the administrative responsibilities. The guarantee program will offer a 30% first loss guarantee on loans up to $150,000 for businesses located in the Parkville neighborhood. This guarantee will facilitate the approval process and will also provide a discount on interest rates for any business participating in this new resource. The Parkville Business Association is facilitating the outreach for the program. Guarantees are always a welcomed tool for being able to expand our ability to serve the community.
 

Community Development Collaboratives

In 2005, CEDF began working with its numerous recipient community groups to co-fund most of the projects. Communities did a superb job of working with CEDF to develop matching funds that allowed CEDF to expand significantly the scope of work in the neighborhoods it served. Thank you to all who made this possible. The community groups were also very successful this year in leveraging substantial funds for implementation of the projects. Also in 2005, CEDF launched a new three year initiative with the City of Bridgeport to provide an array of community development grant activities in four neighborhoods. This collaborative includes as funding partners, the City of Bridgeport, Royal Bank of Scotland, GE Capital, The Bridgeport Area Foundation and the Annie Casey Foundation. CEDF looks forward to implementing this exciting indepth project.