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Reinventing CT – Small Business is Big Business!

 

Governor Dannel P. Malloy's special sessions on jobs, over the past few months, produced many pro-business measures designed to spur job creation, innovation, and business growth. 

 

"One focus of the special session was to help businesses-most notably small businesses-prosper and grow," said Catherine Smith, commissioner of Connecticut's Department of Economic and Community Development (DECD).  "With $180 million in new funding specifically targeted to Connecticut's small business community, the Malloy administration and the state legislature are clearly supporting the job creators and innovators that can accelerate our economic recovery."

 

The Small Business Express Package is in place with $100 million available for small business.

 In order to be eligible for any of the small business programs, your business must:

 

      ·   Employ not more than 50 employees

      ·  Connecticut-based business with operations in Connecticut

      ·  Registered to conduct business in this state for at least 12 months

      ·  Be in good standing on all state and local taxes
·  Economic-based industries* 

  

Small Business Express Matching Grant Program

 

Priority

  

    ·        Economic-based industries*

    ·        Businesses likely to maintain job growth

   

Eligible Expenditures

   

·        Training

·        Working capital

·        Purchase of machinery and equipment

·        Construction or leasehold improvements

·        Relocation within the state

·        Other business-related expenses as authorized by the Commissioner of DECD

 

Terms and Conditions

  

·        Grant amounts from $10,000 to a maximum of $100,000

·        Business must match state grant award dollar for dollar

·        DECD prioritizes on likelihood of applicant maintaining job growth
 

Small Business Express Job Creation Incentive Program


Priority 

 

·        Economic-based industries*   

·        Business creating new jobs that will be maintained for at least 12 consecutive months

 

   

Eligible Expenditures

   

·        Training

·        Marketing

·        Working capital

·        Other business-related expenses as authorized by the Commissioner of DECD

 

Terms and Conditions

 

·        Loan amounts from $10,000 to a maximum of $250,000

·        Up to 4% interest rate

·        Maximum 5-year term

·        Commissioner may:

o   Defer loan payments

o   Forgive all or part of loan based on business’ attainment of job creation goals

·        DECD determines loan terms, conditions, and collateral requirements in a manner that prioritizes job creation and retention

  

 

Small Business Express Revolving Loan Fund Program

 

Priority

 
    ·        Economic-based industries*  

 

Eligible Expenditures

  

·        Purchase of machinery and equipment

·        Construction or leasehold improvements

·        Relocation costs

·        Working capital

·        Other business-related expenses as authorized by the Commissioner of DECD


Terms and Conditions

 

·        Loan amounts from $10,000 to a maximum of $100,000

·        Up to 4% interest rate

·        Minimum 5-year term

·        DECD determines loan terms, conditions, and collateral requirements in a manner that prioritizes job growth and retention

 

To apply please complete and submit the Application form located at www.ct.gov/ecd and click on Small Business Express Program. The Program Procedures and Guidelines will assist with the application process.
 

 

For additional information or questions please contact Michelle Lugo at (860) 270-8052 or via email at Michelle.Lugo@ct.gov

 

     The following lending partners work in conjunction with DECD in implementing The Small Business Express programs:

 

·        Community Economic Development Fund - www.cedf.com – (203) 235-2333

·        Community Capital Fund - www.commcap.org – (203) 332-7977

·        Connecticut Community Investment Corp - www.ctcic.org - (203) 776-6172

·        HEDCO Inc. – www.hedco-ghbdc.com - (860) 527-1301

·        Southeastern Connecticut Enterprise Region – www.secter.org – (860) 437-4659

·        Middlesex County Revitalization Commission –

www.middlesexchamber.com - (860) 347-6924

·        Waterbury Development Corporation – www.wdconline.org - (203) 346-2607

 

    The following programs are also offered for all businesses:

 

Job Expansion Tax Credit (JET)

 

 

Program Overview:

  

Connecticut businesses can be eligible for tax credits of $500 per month for each new full-time job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits, or is a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under the honorable conditions from active service in the armed forces, then the tax credit is increased to $900 per month.

 

These credits will be available for each new employee hired between January 1, 2012 and prior to January 1, 2014 for period of three years. The credit may be apologized against the following taxes:

 

·        Insurance premiums tax under chapter 207 of the general statutes

·        Corporation business tax under chapter 208 of the general statues

·        Utilities company tax under chapter 212 of the general statues

·        Income tax under chapter 229 of the general statues


 

Please see the process outlined below to apply for this credit:

 

 

There are three thresholds to qualify for the credits:

 

·        Businesses with under 50 employees must hire at least 1 new full-time employee

·        Businesses with 50 to 100 employees must hire at least 5 new full-time employees

·        Businesses with over 100 employees must hire at least 10 new full-time employees

 
Application Process/Next Steps:

·        Eligibility Application is submitted by the applicant

·        Eligibility Review is then conducted by DECD

·        Tax Credit Eligibility Letter is submitted to the applicant

·        DECD will provide the applicant with the DECD Reporting Form JET-1 after the end of the applicant’s fiscal year

·        Certificate of Eligibility is issued for tax credits earned based upon a net increase in jobs above the applicant’s baseline employment

 

To apply please complete and submit the jet application located on www.decd.org

 

For additional information or questions please contact Lindy Lee Gold at (860) 270-8073 or via email at Lindylee.gold@ct.gov.

 

 

Manufacturing Reinvestment Account (MRA)

 

·        New legislation doubles limit from 50 – 100 on the number of small manufacturing companies

·        For income years starting January 1, 2012, it doubles, from $50,000 - $100,000, the maximum amount deposited

·        Manufacturers with 50 or fewer employees deposit 100% of domestic gross receipts for 5 years in an interest bearing MRA to save for:

             o   Training, developing or expanding workforce

o   Purchase of machinery, equipment or facilities

·        Corporation taxes on MRA are deferred until withdrawn for eligible purposes and tax rate on withdrawal is 3.5% as opposed to 7.5%

 

For additional information or questions, please contact The Department of Economic and Community Development at (860) 270-8000

 

*Priority will be given to economic based industries which are defined as precision manufacturing, business services, green technology, bio tech and info technology. However, programs are not limited to these industries.

 

 

 

 

 

 

 



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