One of the major roadblocks to starting a small business is having access to capital. To help more minority-owned business succeed and grow, Connecticut has launched an initiative to provide much needed resources, with particular attention to the currently underserved and un-served small businesses. By partnering with the Department of Economic and Community Development (DECD), the Minority Business Revolving Loan Fund (MBRLF)has been established and will be utilized to drive business growth in alignment with the initiative’s strategic goals.
The partners / administrators of the program are the Black Business Alliance (BBA), Hartford Economic Development Corporation (HEDCO) and the Spanish American Merchants Association (SAMA). These groups help to market the program, facilitate qualified candidates for the program, and provide technical assistance.
Qualified businesses for the initiative must meet the below criteria to obtain a loan:
- Open for operation at least one year
- Business is physically located in CT
- Must be a for-profit entity
- Principals and business must be current on federal and state tax filings
- Principals with 50% or more ownership cannot be more than 60 days delinquent on child support payments
If qualified, the loan can range from $10,000 to $100,000 and be structured as either a term loan or line of credit. The interest rate is fixed at 4% and the maturity can be any range up to 10 years.
Access To Funds
Running a small business is very difficult and a common reason for failure is the lack of cash flow and availability of capital in the first few years. Under this program, funds are much easier to access than traditional bank loans. If you are a minority business owner and meet the criteria listed above, this initiative may be a key component to keeping your doors open for many years to come.