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State of Connecticut Department of Economic and Community Development News

Web Site: http://www.ct.gov/ecd
450 Columbus Blvd, Suite 5, Hartford, CT 06103 - 7107
Tel: (860) 500-2300 Fax: (860) 344-2627

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Small Business Assistance Program Initiatives

December 22, 2011

- Small Business Express package - STEP Program - Manufacturing Accounts - Job Expansion Credits - Main Street Investment Fund

Small Business Express package features three programs for companies with 50 or fewer full time employees:

1. Revolving Loan Fund - providing loans ranging from $10,000 to $100,000 for the purchase of machinery and equipment, construction, relocation expenses, working capital and other business related expenses. 2. Job Creation Incentive Program (Loan Forgiveness) - funds from $10,000 to $250,000 to be used for training, marketing, working capital, or other business expenses. Loans may be completely or partially forgiven depending on the company's ability to create and maintain new jobs. 3. Job Creation Matching Grant Program (Loan Forgiveness) - loans from $10,000 to $100,000 to match company funds for things such as ongoing or new training, working capital, purchase of machinery and equipment, and relocation within CT.

STEP Program for companies with 50 or fewer employees (except retail businesses):

1. Small Business STEP provides two grant programs to pay a portion of an eligible employees wages during the first 6 months of employment intended to offset the costs of job training. Eligible employees are defined as someone currently receiving unemployment, living in a community with high unemployment, or a person with a family income less than 250% of the federal poverty level. 2. Small Manufacturer STEP Program provides grant amounts from $2,500 in the 1st month to $1,600 in the 6th month.

Manufacturing Reinvestment Accounts (MRA) for companies with fewer than 50 employees:

This program allows up to 100 qualifying manufacturers (to be determined by DECD) to deposit 100% of their revenue, up to $100,000 for up to 5 years, in an interest bearing MRA. Monies can be withdrawn for training, developing, expanding their workforce or purchasing machinery, equipment, or facilities. Corporate taxes on these funds are deferred until withdrawn and then taxed at 3.5% rather than 7.5%.

Job Expansion Credit:

This program provides tax credits for eligible companies against insurance premium, corporate business, utility company or personal income tax for businesses that create new jobs and hire certain CT residents to fill them. Tax credits in the amounts of $500 per new employee or $900 if the person is receiving unemployment, is a veteran, or has disabilities.

Main Street Investment Fund:

Improvements or renovations by private owners of commercial property for certain municipal redevelopment initiatives provided the expenditure is part of a plan previously adopted by a municipality's governing body are eligible for reimbursement. Qualifying projects include:

Exterior painting or surface treatment Decorative awnings Window or door replacement and modification Storefront enhancements Irrigation Streetscape Architectural features For more information on these programs, contact the Department of Economic and Community Development at: (860) 270 - 8000.

Member News is provided as a service of the Midstate Chamber of Commerce and is also featured in the monthly "Chamber News" newsletter mailed to members.