New Loan Fund Announced

Directions

$4 Million Loan Pool Available to Strengthen Small Business in Southwestern Connecticut

The Community Economic Development Fund officially launched the $4 Million Southwestern Connecticut Segmented Loan Fund at a press conference on September 12, 2007 at the Government Center in Stamford.

Community leaders, local organizations, and small business owners from the southwestern part of the state were invited to learn more about this new resource for start-up and existing businesses.

The $4 million loan pool, comprised of $2 million in private sector money from local banks and other investors, and $2 million in public sector money matched through a grant from the State, is designed to serve small businesses and minority and women owned businesses that have trouble borrowing from traditional sources because they are high risk and do not have the required cash flow or collateral. These loans are available for most types of businesses and may be used for the purchase of new equipment or inventory, for the addition of new employees to help grow the business, or a number of other reasons to help strengthen or stabilize a small business. “As CEDF’s mission is to strengthen neighborhood economies, we’re very excited to bring our experience and expertise to southwestern Connecticut. We’d like to thank the Governor for her support of this initiative, as well as all of our investors who have provided the matching funds,” said Donna Wertenbach, CEDF’s President and CEO.

CEDF also hosted additional events in the following weeks that provided potential borrowers with additional information on how to access these funds for their business. A small business skills workshop on basic accounting and record keeping for small businesses was held in Stamford with 27 business owners in attendance during each of the three sessions of the class.

As a follow-up to the basic business financials workshop, CEDF will be offering a class on QuickBooks and taxes in the next few months. A schedule of classes for 2008 is being developed and new modules will be added to cover topics in customer service, marketing and advertising, public relations, and others that are identified as important to small business owners in Connecticut. These workshops will be offered in 4 locations throughout the state, Hartford, Norwich, Hamden and Stamford, to meet the needs of Connecticut’s small businesses.