Connecticutís New Tools for Small Businesses

2/11/2011

by Ronald F. Angelo, Acting Commissioner

Small businesses are vital to our economy, especially in Connecticut where there are more than 300,000. These are the state’s innovators, entrepreneurs and, most importantly, its employers. Small business owners will be critical to our recovery from the Great Recession and for future growth. In large part, their success will dictate the state’s success.

As part of the state’s ongoing efforts to grow small business, two new small business programs were created in the 2010 legislative session. Connecticut’s Jobs Bill, Public Act 10-75, called for the creation of $15 million small business loan pool and a tax credit aimed at encouraging small businesses to hire new full-time employees.

The Department of Economic and Community Development (DECD) has been working diligently to make these programs as successful as possible. In the last few months, DECD has established the framework for these programs and is getting the word out to businesses that these tools are available.

The Small Business Assistance Revolving Loan Fund program is currently accepting applications. Under this program Connecticut-based businesses with less than 50 employees are eligible for loans and lines of credit of up to $500,000. DECD is handling requests greater than $100,000, while several regional revolving loan fund partners are handling requests of $100,000 and less. Attached is a list of our seven partners. The rate of loans and lines of credit is 4% and the term can be up to 10 years. Funds can be used to purchase machinery and equipment; real estate acquisition; new facility construction; rehabilitation of existing facility; leasehold improvements; inventory; and working capital.

Under the Qualified Small Business Job Creation Tax Credit program, Connecticut-based businesses with less than 50 employees are eligible for a $200 per month tax credit for each new full-time employee they hire. The credit may be used against the tax liability under chapters 207, 208, and 229 of the Connecticut General Statutes. This tax credit is not exclusive to any business structure and is available during taxable years 2010-2012.

With passage of the 2010 Jobs Bill, the state’s economic development efforts were greatly enhanced in the last year. I am hopeful that the 2011 legislative session will provide us with additional tools to retain and recruit businesses to our great state.

To learn more about these programs and other ways the state can help your business, visit www.decd.org or call 860-270-8215.

Revolving Loan Partners

SECTER
Funds: Regional Loan Fund and Small Business Loan Fund
Operation: South Eastern Connecticut
Contact: Ann Chambers
Tel: 860-437-4659
Website: www.secter.org

Middlesex County Revitalization Commission (Administered by Middlesex Chamber of Commerce)
Operation: Middlesex County
Contact: Paul Hughes
Tel: 860-347-6924
Website: www.middlesexchamber.com

Waterbury Development Corporation
Operation: Naugatuck Valley
Contact: Leo Frank
Tel: 203-346-2607 ext.112
Website: www.wdconline.org

Hartford Economic Development Corporation (HEDCO)
Operation: Statewide
Contact: Sam Hamilton
Tel: 860-527-1301
Website: www.hedco-ghbdc.com

Community Economic Development Fund (CEDF)
Operation: Statewide
Contact: Scott Arnold
Tel: 203.235.2333x2020
Website: www.cedf.com

Community Capital Fund (aka Grow Bridgeport Fund)
Operation: Greater Bridgeport
Contact: Ann Robinson
Tel: 203-332-7977
Website: www.commcap.org

Connecticut Community Investment Corporation (CTCIC)
Operation: Statewide
Contact: Mark Cousineau
Tel: Telephone: (203) 776-6172
Website: www.ctcic.org


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2/11/2011
Letter from Dale Kroop
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