CMSC Webinar

Kevin Gremse, NDC

• NDC is a Community Development Financial Institution (CDFI) that provides lending for the CT Small Business Boost Program. The program is public/private partnership, meaning it is capitalized by a combination of state and private bank funds. This type of loan model is active in 18 states throughout the country.
  • There are currently six CT banks funding the program: M&T Bank, Key Bank, First Republic Bank, Webster Bank, and Citizens Bank.
  • The loan program is expected to be active for the next 3-5 years. The state’s investment is $75 million, the banks are providing at least $75 million.
• The loans are aimed at helping small businesses and non-profits in distressed areas, and those owned by women and minorities (MWBE). It’s also targeted to businesses that need smaller loans between $5,000-$150,000. Larger loans of $150,000-500,000 are limited to 10% of the loan portfolio.
  • There are 25 distressed communities in CT, as designated by DECD. The aim is to have at least half of the loans go to businesses in these areas.
• To date, the CDFI’s have provided about 110 loans totaling $16 million. The average loan over the last 3 months was approximately $150,000 but will likely go down over the coming months as the volume of loans increases.
  • Of the 7 CDFI lenders, 4 are CT-based; 3 are based in other state but have experience in this type of lending and so were brought in as lenders.
  • Businesses can choose which CDFI they want to work with. The application is centralized through one platform no matter which lender the business works with.
• A key part of the program is aligning technical assistance with capital assistance. In CT, the main technical assistance provider is the Small Business Development Center.

Scott Arnold, SBDC

• This loan is designed to reach businesses in areas that weren’t reached through DECD’s prior Business Express lending program.
• The technical assistance offered through the Small Business Boost Fund is free, confidential and professional.
• There are 3 types of assistance offered: pre-loan, packaging (during) the loan, and post-loan assistance.
  • SBDC will help applicants determine their eligibility, understand the program details and conditions, provide business templates, understand required documentation, review their loan package, and more.
  • They’ll also help businesses consider whether they can repay the loan, even if they’re eligible for the funds.

Carl Rosa, Connecticut Main Street Center

• Small Main Street businesses can use the loan funds for a variety of purposes including creating a marketing plan that addresses social media, websites or setting up online sales.
• Restaurants can use the funds to update their décor, kitchen equipment or outdoor seating.
• Retail businesses can use the funds for expanding inventory, new equipment, enhancing displays, updating point of sale technology, business security systems, or expanding product lines, etc.
• Service-based or non-profit businesses can use the funds for leasehold renovations, new software systems, or new websites.
• It’s best to talk with your Main Street businesses to see what they need, suggest possible uses and discuss whether the Small Business Boost Fund is a good fit for them.

• Can businesses not in distressed areas utilize the funds?
  • Yes, up to half of the loans will be available to businesses in non-distressed areas.
• Is the funding only available to brick-and-mortar businesses?
  • No, small online businesses (non brick-and-mortar) are also eligible for the funds.
• Can SBDC help small businesses obtain Minority or Women Business Owned certification?
  • Yes, they can help them achieve WMBE certification.