Guaranteed Loans

About the Program

1.	Loan guarantees to help private-sector lenders meet their borrower’s total financing requirements
2.	Guarantees can fully cover losses up to 40% of the principal balance
3.	Can be coupled with loans or investments from other public- or private-sector sources

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.	Guaranteed 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)

Loan Guarantee 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 are determined by lender
5.	1.5% commitment fee ($25,000 cap)
6.	2.0% annual guarantee fee (based on amount guaranteed)
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 guarantee
3.	Guarantee can be released upon lender's request without penalty

Benefits to Borrower

1.	Access financing that is otherwise unavailable
2.	No repayment penalties

Borrowers Process

1.	Discuss transaction opportunity with your commercial lender
2.	Commercial lender will submit lender's credit analysis to CDA loan officer

CDA Process

1.	Flash response with 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 month
4.	Transactions presented to CDA's Board of Directors monthly

CDA Officers

1.	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