Governor Lamont announces first-come, first-served Connecticut Recovery Bridge Program
Yesterday, Governor Lamont announced the Connecticut Recovery Bridge Program, an emergency no-interest bridge loan program for Connecticut small businesses and nonprofits impacted by COVID-19. This new program, overseen by the Department of Economic and Community Development (DECD), will provide one-year, no-interest loans of up to $75,000 to qualified Connecticut small businesses and non-profits.
This first-come, first-serve $25 million short-term emergency bridge loan program is designed to provide cash flow relief to struggling businesses and may be used for salaries and other operating expenses.
All loans will be due in a balloon payment at the end of 12 months, but may be pre-paid without penalty. Applicants are responsible for the payment of DECD’s legal costs to prepare the contract documents, even if the loan is not funded. Payment to DECD for these costs must occur before disbursement.
To be eligible a small business or non-profit must:
- have no more than 100 employees
- be in good standing with Department of Revenue Services and DECD
- have been profitable prior to March 10, 2020
- have no personal credit report 60 days past due in the past six months
A personal guarantee and credit score are required, and the DECD Commissioner has the authority to request collateral to secure any loan provided under this program.
Businesses ineligible to receive the loans include those involved in:
- real estate
- multi-level marketing
- adult entertainment
- cannabis
- firearms
State elected public officials or state employees are also ineligible.
All eligibility and application information can be found on the state’s COVID-19 website at ct.gov/coronavirus.
An overview of the program can be found here: https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/CT-Recovery-Bridge-Loan-Program