We know many Connecticut businesses are struggling as they deal with the effects of COVID-19. We appreciate their perseverance and know they share our commitment to keeping our residents healthy. The state, working with its federal partners, has several programs and initiatives in place to assist businesses during this difficult period. For specific questions related to small business, email the Joint Information Center at COVID19.JIC@ct.gov, or call the DECD small business hotline at 860-500-2333. Individuals can call 2-1-1 for more information.

Minority Business Funding

Overview

Just one of the ways Connecticut encourages the growth of minority-owned businesses is by making it easier to access capital. In addition to an array of funding options, the Department of Economic and Community Development has developed a Minority Business Revolving Loan Fund. Administered through the Hartford Economic Development Corporation (HEDCO), this fund provides loans and lines of credit to Connecticut businesses owned by minorities and/or women.

Program Overview

Through this program, eligible applicants can apply for term loans and lines of credit from $10,000 to $100,000.

  • Interest Rate: fixed 4%
  • Loan Maturity: up to 10 years

Eligibility

To be eligible for financing through the Minority Business Revolving Loan Fund, your business must be:

  • in operation for at least one year and/or officially registered for at least a year;
  • physically located and operating in Connecticut;
  • a for-profit business;
  • current with both state and federal taxes for both the business owner and the business.

Note: principals with 50% or more ownership must not be more than 60 days delinquent on child support.

How to Apply

There are two ways to apply for a Minority Business Revolving Loan. 

Please see a list of FAQs related to programs, applications, process, payments and taxes here.

Other DECD Funding Options 

The Small Business Express Program (EXP) provides quick access to capital for small businesses. Through this program, you may apply for loans of up to $300,000 and for matching grants up to $100,000.

The Manufacturing Assistance Act has made available incentive-driven direct loans for projects when there is a strong economic development potential. Financial assistance begins at $500K+.

Outside Sources of Capital

DECD also partners with a variety of lending partners who are committed to providing opportunities for promising minority leaders to build their businesses in Connecticut. We encourage you to explore the funding options they offer as well.

Hartford Economic Development Corporation (HEDCO)
HEDCO offers small businesses flexible and affordable loan options up to $400,000 with rates as low as 4%. 

 

Community Capital Fund (CommCap)

CommCap makes loans to small businesses for capital improvements, working capital, fixed asset acquisition, commercial real estate and leasehold improvements.

 

Community Economic Development Fund

This organization funds micro loans ($35,000 and under) for small business borrowers.

 

Community Investment Corporation (CIC)

CIC is a nonprofit economic development lender providing loans and guidance to small business entrepreneurs in Connecticut and Rhode Island who have powerful ideas and need help to grow.

 

Connecticut Innovations (CI)

CI has several grants and loans available to help small businesses innovate. Perfect for growing IT, biotech and high-tech businesses. 

 

Southeastern Connecticut Enterprise Region (SeCTer)

SeCTer's various loan programs provide loans from $10,000 to $2 million and can be combined with loans provided by partners (banks, government entities, equity financing). 

Related Resources

The Minority Business Initiative also offers other types of support, including:

Minority-Owned Business Advising

Enhanced Access to State Contracting Opportunities through our SBE/MBE Certification Program 

    Contact

    For assistance with this funding program, or more information about any of the resources available through our Minority Business Initiative, call our bilingual toll-free hotline at (844) 257-9503.