Connecticut Recovery Bridge Loan Program

To help businesses and individuals struggling to cope with the financial impact of COVID-19, federal and state governments have put several programs and initiatives in place to assist.  One such program is Connecticut’s Recovery Bridge Loan Program.  To provide emergency cash flow relief to small businesses and nonprofits negatively impacted by the coronavirus, Connecticut is now offering qualifying organizations with 100 or fewer employees access to no-interest loans.

This $25 million short-term emergency program is being allocated on a first-come, first-served basis and is being administered by the Department of Economic and Community Development (DECD).  If qualified, a business or nonprofit organization can apply for a loan of up to the lesser of $75,000 or three months of operating expenses.

In order to qualify, your business or nonprofit must have 100 or less employees, be in good standing with the Department of Revenue Services (DRS) and DECD, and must have been profitable prior to March 10, 2020 with no adverse personal credit reports 60 days past due during the past six months.  Businesses will not be eligible for this program if involved in real estate, multi-level marketing, adult entertainment, firearms, or cannabis.  State elected public officials or state employees also do not qualify.

If approved, the loan (lesser of $75,000 or three months of operating expenses as explained above) is to be paid back in full in 12 months in one balloon payment with no interest.  A 6-month extension is also available on request and there is no prepayment penalty for early payoff.

Business owners can fill out an application here: 
https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/Emergency-Bridge-Loan-Application-Form. 

In conjunction with completing the application above, the following information must be gathered and provided directly to the DECD via email at decdctrecovery@ct.gov:

• Project Financing Plan and Budget (the DECD has an excel template: https://portal.ct.gov/-/media/DECD/Covid_Business_Recovery/SBE-CRBLP-Project-Fin-Plan--Budget.xlsx?la=en) 
• 2019 Income Statement/Profit and Loss
• Internal Financial Statements (YTD)
• 3-month projected cash flow, demonstrating need
• Summary of adverse economic impact resulting from COVID-19
• Recent credit score report
• Applicant Structure Documents
• Personal Financial Statement
• Ownership Breakdown
• DRS Letter of Good Standing - Obtained here: https://portal.ct.gov/DRS/TSC/Help-Text/Status-Letter 

As explained above, the funds from this program are being allocated on a first-come, first-served basis, and we are strongly encouraging you to apply as quickly as possible if interested.  As your trusted advisor, we here at CironeFriedberg LLP are here to assist in any way we can.  If you need assistance in gathering or preparing some of the above documentation, we are happy to assist you.

After the underwriting and due diligence process, if the loan is approved, DECD will issue a letter of intent outlining the loan amount and terms.  They will work with you to execute a Standard Assistance Agreement and ask you to complete ACH paperwork for a wire transfer of funds.

For any other specific questions on the program, we invite you to read through the FAQ link here: https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/CT-Recovery-Bridge-Loan-Program/FAQ. 

Lastly, remember we are here to help you during these unprecedented times, so please don’t hesitate to call or email us on this topic or anything else that comes up as we all try to cope with this constantly evolving environment.  The CironeFriedberg team is closely following the Federal and State legislative actions that are being rolled out to assist individuals and local businesses and will try to keep you apprised of all pertinent information and welcome your calls to discuss any financial or tax programs that are announced.