About CEDF Loans
Eligibility & Getting Started
CEDF serves all of CT’s 169 towns and employs the governing state statutes and federal regulations in determining a prospect’s potential eligibility to apply for financing.
We will evaluate your inquiry based on criteria that may include one or more of the following:
- Whether your household income falls below the current federally designated threshold for the state or the community where you live.
- Whether your existing business is in a state-designated Connecticut town or a qualified census tract based on federal designations of underserved neighborhoods.
These criteria change periodically and are best evaluated for accuracy by our staff. Please submit a loan application to allow us to identify the relevant standards and determine which financing programs you might be eligible to apply for.
Term Loans
Term loans through CEDF are different from traditional bank loans. They have flexible credit score requirements, flexible collateral requirements, and no prepayment penalties.
Term loan proceeds can be used for:
- Working capital for inventory, rent, utilities, payroll and more
- Current debt
- Purchase of equipment and/or machinery
- Building / leasehold improvements
- Other approved business needs
| Purpose | Amount | Rate | Term | Structure | |
|---|---|---|---|---|---|
| Term Loan | Working capital (including start-ups), inventory, equipment, debt refinance and more | $1,000 up to $50,000 | Fixed | Up to 7 years | Monthly payment of principal and interest. Cannot revolve, no balloon provisions. No prepayment penalty. |
| $5,000 up to $250,000 | Fixed | Up to 10 years | |||
SBA Microloans
CEDF has been Connecticut's leading originator for 13 years in a row! This program provides financing up to $50,000 to help small businesses start up or expand. The minimum amount is $1,000; however we generally do not encourage loans below $3,000. The maximum repayment term allowed by the SBA is seven years.
Microloan proceeds can be used for:
- Working capital
- Inventory or supplies
- Furniture or fixtures
- Machinery or equipment
- Refinancing debt (with some limitations)
| Purpose | Amount | Rate | Term | Structure | |
|---|---|---|---|---|---|
| SBA Microloan | Working capital (including start-ups), inventory, equipment | $1,000 up to $50,000 | Fixed | Up to 7 years | Monthly payment of principal and interest. Cannot revolve, no balloon provisions. No prepayment penalty. |
Commercial Real Estate Loans
CEDF provides owner-occupied and investor commercial real estate loans up to $500,000. Real estate loans can be combined with other CEDF small business loans up to $750,000.
We will consider making mortgage loans that are secured by the following types of owner-occupied properties:
- Commercial / industrial
- Office buildings / office condos
- Retail properties
- Mixed-use facilities (retail / office / residential)
In addition to our eligibility requirements, commercial loan requirements include:
- The owner of the business applying must have been in business for three years or longer
- Fixed interest rates with a maximum 20-year amortization
- Personal guarantee from all principals involved
| Purpose | Amount | Rate | Term | Structure | |
|---|---|---|---|---|---|
| Commercial Real Estate Loan | Purchase of owner- occupied or investor commercial real estate | Up to $500,000 | Fixed | Up to 20 years | Monthly payment of principal and interest. Cannot revolve, no balloon provisions. No prepayment penalty. |
Business Lines of Credit
From time to time, businesses may need short-term financing and some flexibility to achieve their business goals. A business line of credit can be the solution, giving you extra financial flexibility and peace of mind. Lines continually revolve, and you pay interest only on the outstanding balance used.
Receive funds for a short term for:
- Working capital
- Seasonal borrowing
- Inventory purchases and/or to take advantage of special discounts from your suppliers
- Gap coverage due to slow collections of your accounts receivable
- Occasionally making payroll
- Paying time-sensitive bills
| Purpose | Amount | Rate | Term | Structure | |
|---|---|---|---|---|---|
| Line of Credit | Seasonal or cyclical operating cash flow needs | $5,000 up to $250,000 | Variable | Short-term financing; one year renewable | Monthly payment of interest only, only on the amount outstanding. The line revolves as you use it and repay it. No prepayment penalty. |
Nonprofit Organization Loans
CEDF is a U.S. Treasury-certified CDFI loan fund and a 501(c)(3) nonprofit. Your nonprofit may be eligible for a loan if it is a 501(c)(3) nonprofit organization headquartered in Connecticut with a minimum of $500,000 in annual revenues and a minimum of three years in operation as a nonprofit.
CT Small Business Boost Fund
CEDF is a participating lender in this state program along with six other community lenders. To determine if you match to a lender, visit the state’s Boost Fund portal and complete a questionnaire which may match you to one or more lenders. Choose one and complete a full application based on that lender’s process and criteria. All pre-loan advisory and post-loan coaching services are provided by the CT Small Business Development Center.