On Wednesday, March 25, 2020, Governor Lamont and the State of Connecticut launched the Connecticut Recovery Bridge Loan Program to offer assistance to qualified businesses and nonprofit organizations in Connecticut in need of cash to get through the Covid-19 emergency. Loans will be approved and administered by the Department of Economic & Community Development. Below are some key points related to the program:
- Working capital loan of up to lesser of $75,000 or 3 months of operating expenses.
- 0% interest rate
- 12 month repayment term with 6 month extension available
- Cannot have more than 100 employees
- Must be in good standing with DRS & DECD
- Must have been profitable prior to March 10, 2020 with no adverse personal credit reports 60 days past due in prior 6 months
- Not available to certain businesses: real estate, multi-level marketing, adult entertainment, cannabis, or firearms.
- Job creation is not a requirement of the loan program (this is a general requirement of DECD loan programs)
- Loan can be used to pay salaries
- If approved, applicant is required to pay DECD legal fees associated with contract preparation.
- DECD’s goal is 30 days from completed application date but notes process could be 45-60 days.
$25m has been set aside for this program and is being administered on a first-come first-served basis, accordingly we urge businesses interested in the program to commence the application process immediately. Please contact FML if you need assistance with this process.
The link below will provide additional details including application requirements, procedures, and details. https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/CT-Recovery-Bridge-Loan-Program.