Small Business Express

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The Small Business Express Program (EXP) provides loans and grants to Connecticut’s small business to spur job creation and growth.

Small businesses with operations in Connecticut, registered to conduct business for not less than twelve months, in good standing with all state agencies and with the payment of all state taxes, and employing not more than 100 employees, are eligible to apply. Priority for available funding will be given to those eligible applicants who (1) are creating new jobs and (2) are within Connecticut’s economic base industries, as defined in Connecticut General Statutes 32-222, including but not limited to: precision manufacturing, business services, green and sustainable technology, bioscience, and information technology sectors.

In order to better serve our clients and improve the efficiency of the application process, DECD is implementing a new policy. Effective Tuesday, February 20, 2018, all applicants must meet with or speak with a Project Manager prior to submitting a Small Business Express application. Please email DECDexpress@ct.gov or contact the Express Hotline at 860-500-2333 in order to request that a Project Manager to be assigned to contact you.

DECD will generally no longer be accepting Express grant-only applications. Applications for a Matching Grant and Job Creation Incentive Loan combination will continue to be accepted as well as loan-only applications.

Situations where the LOI committee will consider grant-only funding:

• Non-Profits – if the project is focused on capital improvements
• A project, focused on capital improvements, where the majority of the project is funded through either bank financing and or other private funding sources (i.e. at least 1/3 leverage ratio)
• A company receiving EXP funds from one of the lender partners for the same project
• At the Commissioner’s discretion

 

All applicants for EXP loans must submit a Personal Financial Statement form with their application package. DECD may require all loan applicants to provide an unlimited personal guaranty as part of the collateral obligation for a loan. Effective for all new applications received on or after August 28, 2017:

• The job/grant ratio range generally considered has been changed to $5,000 to $10,000 per new full-time W-2 job created. Consideration is given to factors such as the salary level and the skills, education and experience needed to qualify for the job. If an applicant is applying for a grant and is proposing entry level or lower wage salary jobs, then a minimum of two new full-time W-2 jobs must be created to meet the $10,000 grant minimum ($5,000 per job).
• The penalty for not meeting the employment obligation for applicants receiving grant funds has been changed. The penalty is now established by dividing the DECD grant amount by the total number of new full-time W-2 jobs created.

 

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Economic and Manufacturing Assistance Act (MAA)

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Incentive-driven direct loans for projects when there is a strong economic development potential.

 

• Planning, including but not limited to: feasibility studies, engineering, appraisals, market studies and related activities
• Acquisition of real property, machinery or equipment or any combination, provided such assistance does not exceed the fair market value
• Construction of site and infrastructure improvements relating to a municipal or business development project
• Construction/renovation/demolition of buildings
• Relocation expenses for the purpose of assisting manufacturing or other economic-based businesses to locate, construct, renovate or acquire a facility
• Working capital in conjunction with a business development project
• Business support services such as labor training, day care, energy conservation, pollution control, recycling and the like, in conjunction with other state agencies

 

First Five Program

Governor Malloy’s First Five jobs initiative allows for substantial financial assistance for large-scale business projects to encourage business expansion, relocation and job creation. The assistance under this program may include up to 100% funding under the Manufacturing Assistance Act (MAA) and additional business tax credits.

First Five program guidelines:

 

• An eligible business development project under the program must commit to (1) create not less than 200 jobs within 24 months from the date the application is approved or (2) invest not less than $25 million and create not less than 200 new jobs not later than five years after the date an application is approved.
• The Commissioner of the Department of Economic and Community Development (DECD) may give preference to a business development project that is a redevelopment project if the Commissioner believes the project will create jobs sooner than either: 24 months from the date of application if the company creates not less than 200 jobs or within five years from the date of application if the investment is not less than $25 million.
• The DECD Commissioner may waive existing statutory caps on the amount of tax credits insurers may claim against the insurance premium tax.
• The written consent of the Governor is required for financial assistance awarded through the program. Prior to the Governor’s approval, the DECD Commissioner must certify that the business development project applicant has satisfied all criteria in the program.
• In order to expedite the approval process, eligible First Five projects are exempt from current laws requiring legislative approval for financial assistance or tax credits above the present statutorily specified amounts required for approval.

 

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Brownfields

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The Office of Brownfield Remediation and Development (OBRD) is a one-stop resource for brownfield redevelopment in Connecticut, providing financial and technical assistance to municipalities and economic development agencies as well as brownfield owners and potential developers.

The mission of OBRD is to return brownfield sites across the state to productive re-use, including mixed-use, residential, commercial, industrial, retail and open space uses.

Connecticut law defines a brownfield as “any abandoned or underutilized site where redevelopment, reuse or expansion has not occurred due to the presence or potential presence of pollution in the buildings, soil or groundwater that requires investigation or remediation before or in conjunction with the redevelopment, reuse or expansion of the property.”

Brownfield sites exist in every corner of the state and in communities large and small. They range from former factories in urban centers to mills in the hearts of historic villages. In many cases, these sites have been abandoned or underutilized for decades, and in some cases for generations, principally because the costs of remediating contamination have made redevelopment economically infeasible. In many cases, the polluter is no longer a viable entity, and/or the pollution occurred before modern environmental laws were enacted.

Without cleanup investment, brownfield sites will continue to languish as unproductive drags on the state’s economy. Funding sources include:

• Brownfield Municipal Grant Program
• Brownfield Loans
• Brownfield Planning Grants
• Dry Cleaning Remediation Fund

Brownfield projects may be eligible for other state and federal financial incentives such as historic tax credits, urban renewal tax credits and other DECD administered programs. The Connecticut Office of Brownfield Remediation and Development (OBRD) can help municipalities and developers to identify all relevant programs for which a project might be eligible.

 

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Capital Projects

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The Office of Capital Projects assists municipal and nonprofit organizations in managing large-scale infrastructure projects, downtown planning and mixed-use projects.

The Office of Capital Projects (OCP) manages a wide variety of economic and community development projects, maintaining a special focus on building strong town centers, revitalizing downtowns, and promoting economic development by supporting the arts, tourism and community growth.

This office is responsible for providing engineering and construction support services for development programs administered by OCP and other DECD offices. Additional responsibilities include coordinating with clients and DECD staff from the project concept phase through design and construction phases.

The following is the list of just a few of resources available:

• State Historic Preservation Office
• Environmental Compliance
• Professional Services Selection Process
• Bidding, Contracting & Construction Guidelines

 

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