By Attorney
Berchem Moses is committed to helping our business clients navigate this difficult time. Connecticut has announced a $25 million short-term emergency loan program. The program is intended to provide emergency cash flow relief to small businesses and nonprofits negatively impacted by the coronavirus, and offers qualifying organizations with 100 or fewer employees access to no-interest loans. Under the Connecticut Recovery Bridge Loan program, a qualifying business or nonprofit organization can apply for a loan of up to $75,000 or three months of operating expenses (whichever is lesser). Funds will be distributed on a first come first serve basis, so time is of the essence.
To be considered for this program, your business or nonprofit must:
- Have no more than 100 employees
- Be in good standing with the Department of Revenue Services (DRS) & DECD
- Have been profitable prior to March 10, 2020— with no adverse personal credit reports 60 days past due the past six months
- Not be involved in real estate, multi-level marketing, adult entertainment, cannabis or firearms; nor be a state elected public official or state employee
Terms & Conditions of the Connecticut Recovery Bridge Loans are as follows:
- Loan maximum of (a) $75,000 or (b) three months operating expenses, whichever is less
- 0% interest rate
- 12-month term, with 6-month extension available per request
- Freely pre-payable
- Working capital loan
- Personal guarantee and credit score required
The loan applications can be accessed here and the following information will also be required:
- Project Financing Plan & Budget
- 2019 Income Statement (or) Profit and Loss Statement
- Internal Financial Statements (YTD)
- 3-month projected cash flow, demonstrating need
- Summary of adverse economic impact resulting from COVID-19
- Recent credit score report
- Applicant Structure Documents
- Personal Financial Statement
- Ownership Breakdown
- DRS Letter of Good Standing
In addition to the Connecticut Recovery Bridge Loan Program, federal relief is expected to become available in the near future, and Berchem Moses will provide an update to clients once the terms have been finalized.
Please contact Attorneys Robert Berchem at rberchem@berchemmoses.com and Matthew Glennon at mglennon@berchemmoses.com to determine how Berchem Moses PC can best serve your business needs and assist in the loan process.