Connecticut debuts low-interest loan program for small businesses and nonprofits

Gov. Ned Lamont has unveiled the Connecticut Small Business Boost Fund, a public-private partnership designed to provide low-interest loans to small businesses and nonprofits.

The program provides loans ranging from $5,000 to $500,000 with a fixed 4.5% interest rate. The loans are aimed at small businesses and nonprofits with operations in Connecticut that have 100 or fewer full-time employees and annual revenues of less than $8 million.

The state is making a foundational investment of $75 million into this public-private partnership, which aims to lend $150 million. The fund works with and through local community development financial institutions and lenders focused on serving historically under-resourced and underbanked communities. The program is administered by the National Development Council with funding arranged by Calvert Impact Capital; additional funding comes from the Connecticut Department of Economic and Community Development, Citizens Bank, M&T Bank, and First Republic Bank.

“We”™re thrilled to launch the Connecticut Small Business Boost Fund, a new collaboration with private sector partners and investors that will provide companies and nonprofits the working capital they need to grow and thrive,” said Lamont in a press statement. “This fund was established to support small business owners who may have previously experienced barriers to accessing financial support and works with and through community lenders that are dedicated to equitable lending practices.”

Additional information and applications are available at CTSmallBusinessBoostFund.org.