New small business fund will lend $150 million to eligible businesses
Owning a small business in Connecticut can be expensive, but there is a new loan program that is doling out dollars to eligible businesses.
Gov. Ned Lamont picked Schwertle in Bridgeport to announce the new loan program aimed at distressed communities. The business has been open for almost 150 years.
The Small Business Boost Fund will lend $150 million, with most of it going to minority and women-owned companies. Private banks are fronting half of the money.
"Too often, small businesses and not-for-profits lack affordable access to capital that's flexible,” said Frank Micalizzi, M&T Bank Bridgeport president.
For Schwertle, this money comes at a critical time, because Connecticut is not a cheap place to do business. Schwerdtle plans to use the money to buy more equipment, and eventually, hire more workers. They hope it'll be enough to stay where they are.
"I would like to stay here as long as we can, you know, have good space and grow in it. At the end of the day, you've got to do what's best for the business,” said Schwertle President Kathy Saint.
Applications are now being accepted for loans, ranging from $5,000 to $500,000. The program is aimed at helping small businesses and nonprofits, particularly those in low-income and historically underserved communities, with access to flexible working capital. The loans have a fixed, 4.5% interest rate and are available to eligible small businesses and nonprofits with operations in Connecticut that have 100 or fewer full-time employees and annual revenues of less than $8 million. For more information, click here.