February 24, 2012

GOV. MALLOY: INVESTING IN INNOVATION WILL GROW OUR ECONOMY

Loan will Allow Waterford Company to Expand Operations and Create Jobs

(HARTFORD, CT) - Governor Dannel P. Malloy today announced a $500,000 state loan to Lumachip Inc., a Waterford company that is a leader in the solid-state lighting industry. Lumachip Inc. will purchase and install state-of-the-art Light Emitting Diode (LED) semi-conductor equipment that will allow the company to expand manufacturing capacity and hire 20 new employees.

Funding was awarded through the Small Business Revolving Loan Fund administered by the Department of Economic and Community Development. The 10-year loan has an interest rate of 4% and principal and interest will be deferred for the first year.

"Small business is synonymous with innovation. Whether responding to the ever-changing marketplace or competition, small businesses must constantly create new methods and products to be successful," said Governor Malloy. "It's this innovative spirit that makes Connecticut small businesses essential to our state's economic growth, and why state support is so critical for companies like Lumachip. We have a company right here in Connecticut that is developing smart, sought-after, environmentally-friendly products. We want to help these companies get stronger, hire more workers, and keep their competitive edge."

Solid-state lighting, including LED lighting, is a more energy efficient and practical lighting option than either traditional incandescent light bulbs or fluorescent lights. These mercury-free lights have a smaller impact on the environment, last longer, and are more efficient at converting power into light.

"In today's difficult business environment it is extremely important that non-traditional sources of lending are available to small business here in Connecticut," said Andrew Macy, Chief Operations Officer of Lumachip. "The Department of Economic and Community Development, under Governor Malloy's leadership, has made capital more accessible at a critical time, enabling Lumachip to move ahead aggressively with an expansion plan for an industry-leading manufacturing center in Southeastern Connecticut."

Lumachip produces and designs LED lights, including a thin, flexible LED strips for under-cabinet lighting and other hard-to-light areas. The company's products also have practical uses in signs, as well as medical and military applications.

"When Governor Malloy and I toured the Lumachip facility a few months ago, Andrew Macy and other company officials made a strong case for this grant. I'm delighted by DECD's favorable consideration of its application. I have long held the best formula for economic growth is a partnership between the public and private sectors through which regulation and capital investment is coupled with the creativity and adaptability of private businesses," said State Senator Andrea Stillman. "This loan for Lumachip is another prime example of how this partnership can work, and the proof is in the planned expansion that will generate 20 new jobs in a relatively small operation - great news for Lumachip and for our local economy."

"I am extremely excited for Lumachip and extend my congratulations on this loan. It is a testament to their entrepreneurial spirit and drive to grow. This is a wise investment and a step forward in embracing new, green technologies that will save energy in many ways," said State Representative Betsy Ritter (D-Waterford, Montville). "In addition to being more efficient and longer lasting, LEDs produce light in a much cooler fashion than other technologies - decreasing cooling costs in the summer and alleviating the burden on our electrical grid. I commend all those involved with Lumachip for their hard work and dedication."

Funding was awarded through the Small Business Revolving Loan Fund administered by the Department of Economic and Community Development. The 10-year loan has an interest rate of 4% and principal and interest will be deferred for the first year.

"During Governor Malloy's Jobs Tour last year, Lumachip was one of the many stops we made to talk one-on-one with Connecticut businesses leaders and learn firsthand what they were experiencing," said Catherine Smith, Commissioner of DECD. "We wanted their input and expertise as we crafted solutions to the state's jobs crisis, and I think it really made a big difference. Governor Malloy's Jobs Bill had tremendous credibility from the very beginning because it had support from the business community."

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For Immediate Release: February 24, 2012

Facebook: Office of Governor Dannel P. Malloy