From CBIA News, September 2001

Want to expand but lack cash? ‘Grow Your Business’ loan may help

Have banks balked at lending your business money to finance your expansion plans? A “Grow Your Business” loan, available through the Community Economic Development Fund (CEDF), may help.

The CEDF can grant low-interest loans of up to $50,000 to stable small businesses that want to expand but have been unable to get traditional bank financing. The business must be at least three years old and must be located in any of Connecticut’s eligible 51 cities or towns.

The loans have a discounted interest rate set at 1% above the prime lending rate. (Prime currently is 6.5%.) A business owner can select either a term loan or a line of credit. The loan can be used for any legitimate business purpose, including to purchase machinery and equipment, build inventory, or obtain working capital.

The loan program features a streamlined process. To apply, you only need to file financial information and a one-page marketing/management statement, not a complete business plan. 

Money, plus management advice

Along with the loan, the CEDF provides each company with free on-site business consulting, says CEDF President and CEO Donna Wertenbach. “Existing business owners have demonstrated they have what it takes to maintain a successful business, but many of them need an infusion of capital as well as management help to grow their business to a higher level. CEDF provides not only the money but also business advisers to help business owners develop their management skills and grow their business.”

The CEDF, launched in 1994, is capitalized by a public-private partnership of area banks and the state of Connecticut, with the goal of building the economic base of financially distressed communities. 

For more information about the loans, contact Clay Williams at 800-656-4613 or, in Hartford, at 860-249-3800, extension 309. A list of eligible communities and other details can be found online at 
www.bridgeport-econ.org/CEDF.htm. 

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