Connecticut receives $119.5M in federal funds for small businesses

Gov. Ned Lamont announced Connecticut’s small businesses will be receiving $119.5 million in funds through the American Rescue Plan Act (ARPA) and State Small Business Credit Initiative (SSBCI).

In a July 18 press conference, Lamont was joined by White House ARPA Coordinator Gene Sperling, House Majority Whip Rep. Jim Clyburn (D-SC) and Wally Adeymo, the deputy secretary of the Treasury.

Sperling emphasized that the ARPA was not only about providing for the immediate recovery from issues brough on by the pandemic, but also to provide a means for growth.

“The second goal was to make sure that the recovery we had was an equitable one for underserved communities, hard hit communities, and equitable for Americans who too often faced barriers even before the pandemic hit,” he said.

Lamont said two major initiatives are to be launched with the funds: the Connecticut Future Fund to support entrepreneurs from diverse and underserved backgrounds and the ClimateTech or “CT” Fund designated to support start-ups working in clean energy, environmentally conscious manufacturing and climate resilience. Lamont also highlighted that special attention will be paid to developing Connecticut’s potential to produce wind power and improve the supply chain in the state.

During the press event, Adeymo thanked Lamont for giving him the chance to visit the Hartford small business ecosystem and highlighted how important small businesses are across each of the states he visited.

“The thing we know to be true in this country is that small businesses form the core of our economy. They create the majority of jobs in America and they are critical to the infrastructure of our communities,” he said.

“This is probably one of the most long-lasting investments coming out of the American Rescue Plan,” Lamont said. “The American Rescue Plan in the near term kept a lot of our businesses, including small businesses and minority owned businesses going during an incredibly tough time.”

Each state involved in the program will decide individually how they distribute the funds. While some states could opt for grants or forgivable loans, Lamont emphasized that he planned to leverage the funds 10-to-1 akin to the Connecticut Innovations program, which combines private venture capital with public funds.

“I think you’re going to see this 120 million grow to a billion dollars in investments over a period of time,” Lamont declared. “It will represent tens of thousands of jobs and I can tell that in a state like Connecticut, much like across the country, it’s not just the big businesses that will grow. It’s the young, entrepreneurial scrappy companies that are growing and expanding.”

“We are going to be investing equity, hopefully alongside other investors as well. It’s more like the traditional private sector,” Lamont added. “That’s how you get the 10-to-1 leverage that makes the money go further.”