A new SBA loan program is designed to help Connecticut small businesses adapt to changing business conditions and weather future disruptions caused by the coronavirus pandemic.

The Community Advantage Recovery Loan program is designed for existing small businesses and start-up businesses in underserved areas of the state.

The loan, made through the Community Investment Corporation, provides technical and financial assistance to small businesses and start-ups.

The technical assistance involves 15 hours of required advising that must be completed in the first six months of the loan’s term.

Based on a business’ needs, topics may include planning, financial management strategies to build cash reserves and cut expenses, operations management, and marketing and e-commerce.

Allowable uses are limited to working capital, inventory, equipment, and real estate purchases.

Loan amounts range from $50,000 to $250,000.


The loan terms are:

  • A minimum of five years
  • A maximum of 10 years for working capital and equipment, and 25 years for real estate
  • A required 10% minimum down payment
  • Interest rate is maximum prime plus 6%
  • All loans shall be secured by available assets of the borrower and its principals to the extent needed to protect the lender’s interests

Businesses have until Sept. 27, 2020 to get loan approval with a full disbursement of no later than Oct. 1, 2020.

The SBA will cover the payment of principal, interest, and other fees for the first six months.

To apply for a loan, contact the Community Investment Corporation.