The State Legislature’s Commerce Committee is debating on an omnibus economic development bill. This bill leaves an impact on employers to broaden eligibility criteria of businesses owners for new loan and incentive programs. The program is further going to boost state tourism efforts and will help redefine hiring practices.
Senate Bill 1, with strong support from legislators, proposes to make Connecticut businesses eligible to participate in ‘Small Business Express’ and ‘Step-Up’ programs. These programs were introduced during special job session in October. Presently, the programs qualify small businesses having 50 or fewer employees. But then Senate Bill 1 is soon going to redefine small businesses as organizations having 100 or fewer employees. East Hartford Democrat, Sen. Gary LeBeau, says that the change will make more 3,600 Connecticut companies eligible for economic development programs.
Small Business Express program is making $100 million in loans available to employers so that they can create jobs and buy necessary equipments. The ‘Step-Up’ program kept $20 million to help subsidize employment and training for veterans, unemployed and disabled. But lawmakers did all these years is they remained very conservative in defining what really makes a small business. This led to reduction in the number of companies qualifying for loans.
This newly proposed bill will change loan terms of small business express program. It is going to extend repayment period from five to 10 years. Five year payback period has been too short for small business owners. Till now 350 companies have applied for the program. The State also awarded half dozen loans ranging from $11,500 to $250,000. The program leaves plenty of room open to help businesses meet their needs. The program will help to overcome unemployment problems in Connecticut.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org