COVID-19 Relief Program Launched for Minority-Owned Businesses
The Hartford Economic Development Corporation this week launched a financial relief program for minority-owned and women-owned small businesses negatively impacted by the coronavirus pandemic.
HEDCO is partnering with the state Department of Economic and Community Development and the Connecticut Minority Business Initiative.
The COVID-19 Business Response Program offers zero-interest lines of credit up to $20,000 to qualifying small businesses with 20 or fewer employees.
HEDCO will administer the $2 million program. To be eligible, a small business must:
- Be a for-profit business with no more than 20 full-time and/or part-time employees
- Must be a minority-owned and/or woman-owned small business (minimum 51% of minority/woman ownership required)
- Be in good standing with the state Department of Revenue Services
- Conducting business for a minimum of six months
Terms and Conditions
- Line of credit up to $20,000
- 0% interest rate
- One-year line of credit, payable in full 12 months from the date of closing
- Working capital line of credit
- No application fee
- Closing fee of $250, which can be included in the cash flow projections
The debt is eligible to be forgiven if the company can demonstrate the funds were used to cover the first three months of expenditures due to COVID-19.
To receive forgiveness, the business must show documentation of expenditures in accordance with cash flow projections.
- One-page application
- Profit and loss statement as of December 31, 2019
- Year–to-date profit and loss statement as of March 31, 2020
- Three-month projected cash flow needs
HEDCO will issue a commitment letter to successful applicants, prepare closing documents, and issue a check.
For additional information or assistance with completing applications, contact one of the following:
- Entrepreneurial Center and Women’s Business Center, University of Hartford: Contact WBC program manager Milena Erwin (860.768.5681)
- Southeastern Connecticut Enterprise Region: Contact Annie Chambers (860.437.4659)
- Spanish American Merchant Association: Contact: Rosa Jacinto (860.724-.910)
- Women’s Business Development Council: Contact Kenyétta Banks (203.751.9877)
- Connecticut Small Business Development Center: Contact Joseph Williams, Griselda Champagne, or Christine Sullivan
For additional information or questions about the program, email or call HEDCO (860.527.1301).
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