Borrowing Money

Borrowing money (or debt financing) requires repaying the loaned sum over a period of time, usually with interest. Traditional lenders, such as banks, have strict rules about who can and cannot obtain a loan. Non-traditional lenders, such as nonprofit or community lenders or city loan funds, loans from the state at low interest to many businesses. Deciding between traditional and nontraditional lenders, or possibly a combination of these, is an important and necessary step towards managing a successful company.

Click on the following links for more information:

Federal Government Loans

U.S. Small Business Administration (SBA)
SBA can help facilitate a loan for your business with a third party lender, guarantee a bond, or help you find venture capital. With a local office located in Hartford, Connecticut, SBA offers a number of financial assistance programs for small businesses designed to meet certain financing needs, including debt financing, surety bonds, and equity financing.

U.S. Department of Agriculture (USDA)
With a $206.2 billion portfolio of loans, USDA is a large department committed to helping improve the economy and quality of life in rural America. They offer loans, grants and loan guarantees to support essential services such as housing, economic development, health care, first responder services and equipment, and water, electric and communications infrastructure

U.S. Small Business Administration’s Loan Programs
A list of the available SBA loan programs that are offered to a variety of businesses. Some are irrespective of business type, size, and can even be proved to homeowners. Make sure to look into this listing even if you are not a small business.

State Loan Programs

Connecticut offers two state programs to provide direct funding for businesses:

Department of Economic and Community Development Direct Assistance (DECD)

  • Economic and Manufacturing Assistance Act (MAA) - low-interest loans and incentive-driven direct loans for projects with strong economic development potential. May be used to purchase equipment, furniture and fixtures, construction, leasehold improvements, training and other eligible activities.
  • Small Business Express Program - loans and grants to Connecticut's small business to spur job creation and growth.​

Other resources that your business can take advantage of are:

CT Innovations
A quasi-public corporation providing equity, debt and bond financing and other forms of financial assistance to companies in all stages of the business lifecycle. Offers strategic guidance in business, finance, education, government and nonprofit sectors. Designed to stimulate business investment, grow the state’s economy and expand the technology sector.

Small Business Resources
A guide for small businesses operating in Connecticut. Specifically tailored to our laws and  our business environment. Make sure to consult this resource to learn about the options available to you through the SBA as a small business owner in this state.

Statewide and Regional Lending Partners

Community Economic Development Fund (CEDF)
An SBA supported organization focused on providing financial assistance to both startups and established businesses looking for flexible financial options.

Connecticut Community Investment Corporation (CTCIC)
Provides Connecticut's small business owners with access to capital that may not be available elsewhere. Targeted towards business owners focused on growth and looking to purchase real estate and/or machinery and equipment.

BDC Capital  
Private company in which many New England financial institutions have pooled their money to share the risk of funding the expansion of promising companies. Provides financial assistance with loans, mezzanine and equity investments, guarantees and financial services to businesses of every type and description.

Community Capital Fund
CommCap small business loans target existing small businesses, community-based organizations or start-up companies in the greater Bridgeport area and range from $50,000 to $500,000. The loans are designed to finance working capital needs, the purchase of machinery and equipment and/or new construction or the rehabilitation of commercial real estate.

HEDCO
Provides Connecticut small businesses with access to capital needs that would be otherwise unmet or underserved. HEDCO offers small business and nonprofit organizations flexible and affordable loan options up to the maximum amount of $400,000 with 1 to 10 year terms and interest rates between 4% and 7%.

Banks

Although difficult to obtain, banks offer one of the most traditional and conservative ways of financing a business. They are generally short-term loans, seasonal lines of credit, or single-purpose loans for machinery and equipment. An organized and well constructed business plan, any personal/business credit history and a cash flow projection for at least one year are requirements of most banks for funding consideration. The United States Small Business Administration offers a more in depth look at the process and steps needed to secure a bank loan. We highly advise you look over this site before approaching a bank about your financial needs.

SCORE

The Service Corps Of Retired Executives, or SCORE, is an SBA supported nonprofit association made up of thousands of volunteer business counselors throughout the U.S. and its territories. The 51 year old nonprofit association is dedicated to the mentoring and education of small business owners, helping them both get off the ground and achieve their long term goals. The Fairfield County SCORE Chapter, located in Norwalk Connecticut,  is one of the most successful in the country. Comprised of more than 100 experienced business professionals, whose cumulative experience covers a broad range of sectors, the prestigious chapter has conducted more than 4,000 private sessions a year and helping 1000 new clients develop their businesses. Due to the support from the SBA, SCORE offers their services at no, or very little, charge. We highly advise you take advantage of this informative support community to further develop your understanding of the business world.