CEDF is not a disaster loan organization, but we can help route you to programs offered by the state and federal government created to help small businesses. These are the programs we are aware of.
Federal Stimulus Legislation (CARES)
While the two-trillion dollar federal legislation has provision for more small business lending and other kinds of relief, the SBA has 15 days from March 27 to work out the regulations and procedures.
Paycheck Protection Program
The Paycheck Protection Program (PPP) and Health Care Enhancement Act passed by Congress on April 23 provides for the Small Business Administration to expand the corps of PPP lenders to include community development financial institutions like CEDF. We are investigating the requirements with the SBA and are hopeful of becoming a PPP lender soon. At present, CEDF is not authorized to accept PPP loans. Please watch this page for further announcements on this subject.
At this writing, these loans will be accepted by SBA 7(a) lenders, which are primarily banks. For instance, almost all of CEDF's investors are participating banks. Please note that the information sheet is imprecise in regard to this definition. CEDF is not an SBA 7 (a) lender and is not currently authorized to accept PPP applications. Please consider contacting your current or one of our investor banks.
The program is a potentially forgivable loan designed to help small businesses keep their workforces employed.
Here are links with:
an updated information sheet
and the PPP application form provided by the Treasury Department.
Information sheet on PPP from the US Chamber of Commerce in Spanish.
For a deeper dive and to proactively research questions not covered in the information sheet, read this abridged version of the SBA Interim Final Rule released on 4/3/20.
Rules for self-employed individuals (those who take draws from profits) are included in this abridged document.
Update 4/10/20: The Treasury Department released this Q&A adding to interpretation of the SBA Interim Final Rule.
If you own more than one company, consult this SBA document on affiliation.
This is the application for loan forgiveness released on 5/15/20. Some banks may use a different form.
This is an abridged version of the SBA Interim Final Rule with regulations for forgiveness released on 5/22/20 containing just the rules and Q&A for borrowers.
This program was closed to new applicants on the day the initial PPP funding ran out. Additional funds were allocated to EILD in the next round of stimulus funding but the program but the application portal remained closed. On 5/4/20 it was reopened but only for newly authorized agricultural-related businesses.
The SBA has changed the URL for the EIDL (Economic Injury Disaster Loan) and the related $10,000 grant.
This federal program provides direct loans. Information on the SBA website is currently very limited but this fact sheet from the U.S. Chamber of Commerce has useful information that appears authoritative.
State of Connecticut Efforts
Insurance and Property Taxes
Insurance grace period. For 60 days beginning April 1, no insurer regulated by the Connecticut Department of Insurance – including life, health, auto, property and casualty – may lapse or terminate a covered policy because the policyholder is unable to pay the premium or interest during this time. Policyholders must check with their carriers to determine their eligibility for this grace period. You can find additional Insurance Department guidance here.
Relief from municipal tax and fee deadlines and collections. Cities and towns are required to offer eligible taxpayers at least one of the following, and may offer both:
- A 90-day deferment for any taxes on real property, personal property or motor vehicles, or municipal water, sewer and electric rates, charges and assessments.
- Reduced interest on delinquent tax payments to property owners under certain conditions.
Unemployment Compensation for the Self-Employed
Historically, self-employed individuals who take compensation through profits and do not receive a W-2 paycheck have never been eligible for state unemployment compensation. However, the CARES Act has a provision to provide compensation to this group. As of April 30, the CT DOL the has implemented the Pandemic Unemployment Assistance (PUA). Download instructions from the CTDOL website here.
Update: The state announced a pause in the acceptance of new applications effective 6 pm on Friday 3/27.
The short link above goes directly to the page from the Department of Economic and Community Development that explains the short-term loan program with links to apply. Complete the brief application, wait for instructions in an email acknowledgement. You'll have seven days to upload the required documentation.
The Treasury Department and the Internal Revenue Service announced the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted. Read the details here.