The Hartford Economic Development Corporation (HEDCO) has partnered with the State of Connecticut, the CT Department of Economic & Community Development (DECD) and the CT Minority Business Initiative to provide financial relief to minority-owned and women-owned small businesses negatively impacted by the coronavirus pandemic.Under the COVID-19 Business Response Program, a qualifying small business with 20 or fewer employees may apply for a zero-interest Line of Credit for up to $20,000.
This $2 million program will be allocated to minority-owned and women-owned small businesses. The program will be administered and underwritten by HEDCO.
Eligibility
To be considered for this program, your 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 Department of Revenue Services (DRS)
· Have been conducting business for a minimum of 6 months
Terms & 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 $250.00, 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 3 months of expenditures due to COVID-19. In order to receive forgiveness, the business must show documentation of expenditures in accordance with your cash flow projections.
Application Requirements
· 1-Page Application
· Profit and Loss Statement as of December 31, 2019
· Year–to-date (YTD) Profit and Loss Statement as of March 31, 2020
· 3-month projected cash flow needs (INSERT LINK)
Application and Approval Process
Upon completing the 1-Page Application and submitting the required documentation, underwriting and due diligence will be completed by HEDCO.
If your loan application is approved, HEDCO will:
· Issue a Commitment Letter outlining terms and conditions
· Prepare closing documents for Client’s signature
· Issue a check with the funds.
Contact Information and Additional Support
Any of the following organizations are available to answer your questions and/or assist with the completion of your application:
Entrepreneurial Center and Women’s Business Center, University of Hartford
Contact: Milena Erwin, WBC Program Manager
860-768-5681
Southeastern Connecticut Enterprise Region (SeCTer)
Contact: Annie Chambers
860-437-4659
Spanish American Merchant Association (SAMA)
Contact: Rosa Jacinto
860-724-4910
Women’s Business Development Council
Contact: Kenyétta Banks
203-751-9877
CT Small Business Development Center (SBDC)
Contacts: Joseph Williams, Griselda Champagne, Christine Sullivan
To request support, click on the “Sign Up for Advising” button here
NOTE: Reference “Minority/Woman Owned HEDCO Line of Credit”
For additional information or questions about the program, contact HEDCO at Covid-19@hedcoinc.com or (860) 527-1301.