An Overview of the Connecticut Department of Economic Community Development's (DECD) Small Business Express Recovery Bridge Loan Program

by Michael A. Ceccorulli

Note: It us our understanding that the DECD stopped accepting applications for its Connecticut Recovery Bridge Loan Program at 6 p.m. on Friday, March 27. DECD has received more than 4,000 applications for these small business loans (less than 100 employees) and doubled the size of the fund to $50 million.  The state wants to process and service current applications as quickly as possible.  

This program and its processes are being implemented and are entirely subject to change over the coming days and weeks; we understand the following information to be the best available to us at this time. We will continue to provide updates.


$25 million in funding made available by DECD to support companies’ ongoing business operations that have been significantly disrupted by the COVID-19 crisis.

Statutory Authority

Small Business Express Program (Connecticut General Statutes Section 32-7g)

Business Eligibility Criteria:

  • Available to CT businesses and non-profits with no more than 100 employees
  • Demonstrable hardship due to current crisis
  • Must be in good standing with the DRS & DECD (assume DOL as well)
  • Ineligible businesses include (but may not be limited to) those involved in real-estate, multi-level marketing, adult entertainment, cannabis or firearms; not available to state elected public officials or state employees
  • Credit Scores Required- Business must have been profitable and principals must not have adverse personal credit reports

Funding Terms:

  • Working capital loans up to lesser of:
    • Amount of 3 months of operating expenses OR $75,000
  • 0% interest rate
  • 12 month term, payable in full upon maturity (balloon payment), with no prepayment penalty (term may be extended for an additional 6 months upon request and approval)
  • Personal guaranties required

Application Requirements:

  • Acceptable evidence of authority (for business entities) and ownership
  • Financing Plan and Budget showing proposed expenditures of loan proceeds
  • YTD Internal Financial Statements, 2019 P&L and projected 3-month cash flow
  • Copy of valid driver’s license for all personal guarantors
  • Recent Credit Score reports
  • Evidence of insurance

Program Process:

After the underwriting and due diligence process, if your loan application is approved DECD will:

  • Issue a Letter of Intent, outlining the loan amount and terms
  • Work with you to execute project documents including:
    • Standard Assistance Agreement
    • Non-Discrimination Certification Affidavit (if loan ≥ $50,000)
    • Guaranties of principal(s)
    • More to be determined
  • Ask you to complete ACH paperwork so that funds can be transferred by wire.

Useful Links:

For additional information or questions, contact the Express Hotline at (860) 500-2333 or via email at  Email is preferred.

Pullman & Comley attorneys have been closely monitoring the many developing implications of the COVID-19 pandemic for businesses and for professionals, including law firms.  We have been responding, and will continue to respond, to a wide range of risk management questions.  The firm’s FOCUS page for the latest COVID-19 advisories may be found here.    

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