Funding for a microgrant initiative by the Women”™s Business Development Council (WBDC) aimed at supporting women- and minority-owned small businesses in Connecticut has surpassed the $1 million mark, with more funds on the way.
The WBDC itself has raised $525,000, with dollar-for-dollar matching funds contributed by the state government, WBDC CEO Fran Pastore announced this morning. Over $116,000 has been disbursed to 12 businesses, she said, with individual grants ranging from $5,500 to $10,000.
“Every single nickel coming into this fund is going to get out on the street,” she said.
Also appearing at the virtual press conference was DECD Deputy Commissioner Glendowlyn Thames, who described the WBDC as “truly an extension of the DECD team,” one which is helping the state provide capital to businesses during the Covid-caused economic downturn. Over 90% of the businesses registered in the state are small businesses; they employ more than 50% of Connecticut”™s workforce, she said.
“Female-owned small businesses have been disparately affected by the pandemic,” Lt. Gov. Susan Bysiewicz said, “particularly those in the food, retail and travel businesses.
“We kept hearing about their need for capital,” she continued, noting that that issue predates the pandemic. In addition, of the approximately 60,000 businesses that received federal funding under the first round of the Small Business Administration”™s Paycheck Protection Program (PPP), Bysiewicz said, 78% were owned by men and 84% by white business owners.
Hartford-based business development service HEDCO has loaned more than $2 million to women- and minority-owned businesses, particularly in urban areas, but ”“ as was the case with the DECD”™s bridge loan program ”“ it was “way oversubscribed,” she said.
The lieutenant governor said the WBDC Equity Match Grant Program came out of direct talks with Pastore. “What if we tried to raise money from these banks (who made PPP loans) and from private individuals who appreciate the she-cession?” she recalled asking.
To receive the grants, businesses need to demonstrate their willingness to “put some of their own skin on the line,” Bysiewicz continued. As an example, she said a woman business owner looking to buy a piece of equipment for $10,000 could put up $2,500 of her own money and demonstrate how the equipment would help expand her customer base, in which case “We will help find that money.”
Applications are now being accepted for a second round of funding set to begin Feb. 1. Pastore said applicants must be in business for at least two years; have an automated financial system; an established banking relationship; and provide a business plan that includes financial statements for the past two years and projections for the next three.
“We intend to be flexible and nimble” in reviewing applications, she said, noting that the program is also open to startups. Full details can be found here.
Pastore said the group anticipates granting about $200,000 in the second round and that another three rounds will take place this year.
A number of additional educational forums are also in the works at WBDC, Pastore said, including ones specifically tailored to childcare providers and those needing assistance with technology and marketing.
