According to the American Chronicle, the nonprofit organizaion known as the Community Economic Development Fund (CEDF) will offer $4 million loans to qualifying businesses in Connecticut. With many businesses still struggling through a slow recovering economy, CEDF wants to help businesses that have been unable to obtain traditional bank loans.
The $4 million that CEDF is offering comes in the form of two seperate loans of $2 million dollars: the first comes from the CEDF itself, while the second comes from matching funds from the state. Terms of the loan vary, but they are generally geared towards low to moderate income small business owners. CEDF will also not loan money to certain businesses, such as liquor stores or adult booksores. Also, the applicant's family income cannot exceed $84,500. In other words, this is certainly no bail out for big businesses.
Southwestern Connecticut, were the loans are being made available, is an area of the state that has been particuarly hit by the recent economic distress the country has endured. Because of this, the loans that the CEDF is making available should be a huge boon to the small businesses in the area.