COVID-19 Business Response Program

Line of Credit

 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 HartfordContact: Milena Erwin, WBC Program Manager860-768-5681entrectr@hartford.eduwww.hartford.edu/ec Southeastern Connecticut Enterprise Region (SeCTer)Contact: Annie Chambers860-437-4659achambers@secter.org Spanish American Merchant Association (SAMA)Contact: Rosa Jacinto860-724-4910rosa_jacinto@samact.org Women’s Business Development CouncilContact: Kenyétta Banks203-751-9877KBanks@ctwbdc.org CT Small Business Development Center (SBDC)Contacts: Joseph Williams, Griselda Champagne, Christine SullivanTo request support, click on the “Sign Up for Advising” button hereNOTE: 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.