$125M in state loans available for companies

By Lau Guzmán Record-Journal staff

The Connecticut Small Business Boost Fund still has $125 million in loans available, especially for businesses owned by minorities and women.

The fund was launched in July as a public-private partnership that provides low-interest loans to small businesses and nonprofits in Connecticut. The program was designed to lend over $75 million-$150 million from a foundational investment from the state. So far, the fund has loaned $23 million to more than 190 businesses, according to fund statistics sent to the Record-Journal via email.

The program is aimed at helping small businesses and nonprofits particularly those owned by women and minorities with access to flexible working capital. This was a policy decision by senior management, said Sheila Hummel, business development program manager for the state Department of Economic and Community Development.

“Knowing some business owners face systemic barriers to accessing financing and business resources, 50% of financial assistance [is] directed to minority-, woman-, disabled- and veteran-owned businesses, and businesses located in distressed munici- palities,” she said in an email statement. “We value these businesses and their contribution to the economy in Connecticut.”

So far, 58% of boost fund loans have gone to minorityand women-owned busi-

Historical disparity in business lending

nesses. Boost fund loans have a fixed 4.5% interest rate. The intent was to make the cost of capital affordable to small businesses and aid in the recovery and growth of existing small businesses during the next five years, Hummel said.