Participating Loans

About the Program

1.	Junior participating loans with private-sector lenders to enable them to meet their borrower’s total financing requirements
2.	CDA participation up to 50% of the principal balance
3.	Can be coupled with loans or investments from other public- or private-sector sources

Read a success story.

Eligibility

1.	Companies that contribute to Connecticut's economic base
2.	The borrower is unable to satisfy the lender's standard loan underwriting criteria, e.g. Inconsistent profitability; Insufficient or ineligible collateral; marginal debt service coverage
3.	Participating loans are not available for: Residential, Non-owner occupied real estate; Retail or personal services (eligible under URBANK), Not-for profits (may be eligible under URBANK)

Participating Loan Terms

1.	Personal guarantee of owner(s)
2.	CDA assistance up to$20,000 per job created or retained
3.	Debt service capability is evident
4.	Interest rate, terms and maturity determined by lender.
5.	CDA and lender proportionately share in fees and interest charged the borrower
6.	Participation funded at closing
7.	Lender services the loan

Benefits to Private-Sector Lenders

1.	Retain or expand existing--or establish new--commercial lending relationship
2.	Lending risk reduced by amount of participation
3.	CDA's collateral position generally subordinated as to principal
4.	Community banks can meet their client's total financing needs
5.	Participation can be repurchased at any time with no repayment penalty
6.	Documentation limited to Participation Certificate

Benefits to Borrower

1.	Access financing that's otherwise unavailable
2.	Higher advance rates, reduced documentation, no CDA add-on fees

Borrower's Process

1.	Discuss the transaction opportunity with your commercial lender
2.	Commercial lender will contact CDA loan officer

CDA Process

1.	Flash response within 2-3 days following lender's exploratory contact
2.	Staff review in 4-7 days following receipt of appropriate documentation
3.	Submit final documentation the 1st day of the month
4.	Transactions presented to CDA's Board of Directors monthly

CDA Officers

	Contact:
	Stephen J. Benedetto 860.258.7838 Brien T. Day 860.258.7831 P. Joseph Harpie 860.258.7832 Robert A. Phelon 860.258.7836

See our CDA Lending Partners

For Additional Information on all CDA Programs Contact CDA by email..

Applications:
Participating Loan & Guaranteed Loan - Borrower's Application
Participating Loan & Guaranteed Loan - Lender 

Other helpful Documents:
Personal Financial Statement
Comprehensive Business Plan Outline
Financing Business Plan Outline