State of Connecticut Department of Banking

Apply for a Business and Industrial Development Corporation License

Persons engaged in the business of a business and industrial development corporation as a participating lender under the loan guarantee programs of the federal Small Business Administration (SBA) in Connecticut are required to be licensed by the Banking Commissioner.  Exemptions to the licensing requirement include any person licensed by the Small Business Administration as a small business investment company or a small business lending company; banks or credit unions; and any person not approved or not seeking approval by the Small Business Administration as a participating lender under one or more of its loan guarantee programs.  

Key Requirements/Qualifications
  • Application fee of $400
  • Minimum net worth requirement of $2.5 million
  • Character and experience assessments of the entity’s Directors and Executive Management (including biographical and financial report submissions)
  • Renewal of the license is required by June 20th annually (including a $400 annual renewal fee)

Applicants must also submit an application with the SBA to be considered for Department of Banking approval*. Requirements for SBA may include:
 
- Proof of licensing with the Connecticut Department of Banking
- Originate at least four loans for SBA review
- Be in operation for at least one year
 
*Potential applicants are encouraged to contact the SBA to confirm requirements.

 
How to Apply
  • Schedule a meeting with the Department of Banking to discuss application logistics and requirements (this should occur at least 30 days prior to the planned submission of a draft application)
  • Submit draft application
  • Department of Banking will provide a review and response to the draft application submitted
  • Resubmission of draft application may be required for additional review
  • Submit actual application 
  • Department of Banking will provide a response regarding the review of the application and request additional information as necessary
  • Department of Banking will review the additional information submitted
  • A final decision will be rendered, and an approval granted should the Department determine that the applicant has satisfactorily met the requirements of sections 36a-627 through 36a-633 of the Connecticut General Statutes

Items to Include in the Application

  • Certificate of Incorporation/Formation 
  • General description of the entity and Business Plan (as applicable)
  • Most recent fiscal year-end financial statements (Income Statement and Balance Sheet)
  • Description of the Directors and Executive Management Team (including work experience of the management team)
  • Write-up detailing how the entity meets the requirements contained in section 36a-628 and 36a-629 of the Connecticut General Statutes (including general fitness of the management team, the financial resources of the entity, and the overall serving of the public’s interest) 
  • Interagency biographical and financial reports for the entity’s directors and officers

Applicants are required to use the BIDCO Applications forms - see below.

Forms
Contacts

Danzel Palmer, Director, Financial Institutions Division

Matthew Saunig, Assistant Director, Financial Institutions Division

Joseph Wallace, Banking Department Manager