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Frequently Asked Business Questions
CBIA
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Innovative Solutions to Complement Your Bank Financing
CBIA
Service Corp. has partnered with The Business Development Company to make
supplemental financing available to Connecticut companies.
Funded by banks, and a member of the Connecticut Banker’s
Association, The Business Development Company can provide CBIA members
with financing designed to supplement conventional bank lending. Their
primary focus is to assist banks in delivering funding to businesses by
providing supplementary financing which complements what banks are willing
to provide.
Depending on the particular program, The Business Development Company's
loans and investments typically range from $500,000 to $2 million. The
Business Development Company works with both low and high tech companies
and specializes in assisting manufacturers, distributors, and service
companies with revenues from several million dollars to as much as $100
million. Credit decisions are made by The Business Development Company.
The Business Development Company Programs At A Glance
Direct Loans
- Loans from $500,000 to $2 million
- For permanent working capital, refinancing, and real estate, machinery
& equipment, and acquisition financing
- Rates typically 1% to 2 3/4% above prime
- Can offer longer repayment terms, higher advance rates and junior
secured term debt
- SBA Preferred Lender for 7(a) guaranteed loans
Community Loans
- Loans from $150,000 to $2 million
- Designed for minority and women-owned businesses, not-for-profits
and businesses in economically disadvantaged areas
SBA 504 Loans
New England Certified Development Corporation, an affiliate of The
Business Development Company
- Long-term loans for fixed asset projects
- Loan projects from $500,000 and up
- For purchasing land and buildings, new construction, renovation and
leasehold improvements, machinery & equipment
- Low rates, fixed for 20 years for real estate; 10 years for machinery
& equipment
- Low down payment: 10% equity in most cases
Mezzanine & Private Equity Funds
MB Capital
- Investments from $500,000 to $5 million
- Provides mezzanine financing to privately held and family-owned businesses
which have an equity capital requirement but whose owners prefer not
to relinquish a controlling ownership interest
- Market rate of interest plus a success fee or warrant or both
- For well-managed, strongly positioned companies located in New England
for growth capital and acquisition financing
Private Equity/Venture Capital
- Investments typically from $1 million to $5 million
- Sourced from our private equity investment partners
- For seed/early stage and more mature growth companies
To find out if one of these programs fits your needs, call CBIA's
Tom Guerra at 860-244-1160.
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