Small Business Express


  • Program
    • Is the Revolving Loan a line of credit for general working capital?
      Answer: No, the revolving loan program is a loan program for specific eligible uses with a focus on retaining existing full-time jobs. Funds are generally disbursed in one payment.
    • How do I know whether to apply for a loan or a grant?

      It depends on the company’s circumstances:

      1. The Revolving Loan Program offers loans to help support companies to retain existing full-time employees.
      2. The Job Creation Incentive Loan Program offers loans to help support companies growth, including the creation of new full-time jobs and the retention of existing full-time jobs. This program allows for consideration of some loan forgiveness for job creation.
      3. The Matching Grant program offers grants for job creation.

      The program requires a dollar for dollar match from the Company.

      (Effective for all applications received on or after December 15, 2017: DECD will no longer accept EXP grant-only applications. Applications for a Matching Grant and Job Creation Incentive Loan combination will continue to be accepted as well as loan-only applications.)

    • Can a grant and loan request be made through DECD at the same time?

      Yes, you may apply for both a Matching Grant and a Job Creation Incentive Loan at the same time and on one application form.

      (As of December 15, 2017, DECD is no longer accepting grant-only applications.)

    • Is there a job obligation associated with the award of funding?
      Answer: Yes, the purpose of the Small Business Express program is to create and retain jobs in Connecticut. For the Revolving Loan, applicants would have an obligation to retain existing full time jobs for 24 months. For the Matching Grant and Job Creation Incentive Loan, applicants must create new full-time jobs within 12 months and then retain both the new full-time jobs and the existing full-time jobs for 24 months.
    • Is there a job/grant or job/forgiveness ratio?
      Answer: While applications are reviewed on a case by case basis, generally the ratio is $5,000 to $10,000 per new full-time W-2 job. Consideration is given to factors such as the salary level and the skills, education and experience needed to qualify for the job. If an applicant is applying for a grant and is proposing entry level or lower wage salaries, then a minimum of two new full-time W-2 jobs must be created to meet the $10,000 grant minimum ($5,000 per job). Please note that if an applicant receives both a grant and a loan, typically there is no forgiveness on the loan. (Effective date: August 28, 2017)
    • Do new full-time 1099 type positions count toward the job obligation?
      Answer: No, the positions must be full-time positions where the employee receives a W-2 form and the employer reports the job to the CT Department of Labor. Please note that often company owners do not fall under this category.
    • Is there a penalty if the Company doesn’t meet the job obligation?
      Answer: Yes, effective August 22, 2017, the employment penalty is established by dividing the DECD grant amount by the total number of new full time W-2 jobs created. (DECD grant amount/number of new full-time W-2 jobs = $ per job penalty.) If the Employment Obligation is not met for a loan, the interest rate will be increased by one-percentage point (1%). If the Company has both a loan and a grant, both penalties apply.
  • Application & Process
  • Payment
    • How are funds disbursed?
      Answer: Typically, the funds are disbursed in one payment. However, each project is reviewed case by case and may differ depending on variables that could impact each agreement. In some cases, funds could be arranged to be disbursed in phases.
    • Can I defer loan payments?
      Answer: Possibly—each project is reviewed on a case by case basis and the decision would be made based on the specific circumstances.
  • Taxes
    • Are DECD grants taxable?
      Answer: Grants may be taxable. Please consult your tax advisor on your Company’s specific tax situation.