It goes as ‘the Eastern Connecticut Segmented Loan Fund’ and its purpose is to provide business loans to small and micro-sized businesses. This program is meant to help small and micro-sized businesses succeed in their businesses.
This fund has helped 40 small businesses maintain 200 jobs in eastern Connecticut with a fund of $4.7 million. The Meriden-based Community Economic Development Fund saw huge success and it started with an original capital pool of about $3.8 million as conveyed by its President Donna Wertenbach. The loan fund closed 46 loans and helped 38 businesses. Majority of 25 of the businesses are owned by women or minorities. Microloans to women and minority entrepreneurs were made in 18 communities that included cities and suburbs of eastern Connecticut. Loans ranged from $50,000 to $250,000.
This community- development fund is more flexible than what banks offer. It is a means to find appropriate financing in cases when business are unable to find bank-loans. The loan fund is quite diverse for it can be used by dairy farmers, landscapers, small manufacturers, photographers, bakers and even owners of convenience stores and food services.
The ‘Community economic development fund’ was first implemented in 1994 by the Lowell Weicker administration. Wicker understood the importance of small business fund and so tried to create an alternative funding structure. The administration’s mission was to support the development of small businesses in a conducive environment.
A handful of local community banks provide capital to the eastern Connecticut loan fund. These include Liberty Bank, Eastern Federal Bank, Dime Bank, the Savings Institute Bank & Trust, Jewett City Savings Bank and Chelsea Groton Bank. Role played by Community Economic Development Fund is vital. It covers overhead expenses of managing and running loan funds. It also provides a holistic array of services to small businesses. Several hundred small business owners receive training program due to the availability of the community development fund.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to