CDA

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)

  • Use of Proceeds:
    1. Term working capital
    2. Machinery and equipment
    3. Purchase, construct, expand or upgrade facilities
    4. Mortgages on owner-occupied real property
    5. Performance guarantee
    6. Finance foreign trade or receivables
    7. Brownfields remediation and redevelopment
  • 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
    8. Maturity tailored to transaction–up to 20 years
  • 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

  • Borrower's 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 Loan Officers

    Contact:

    Janet M. Siegenthaler
    860.258.7816    		 P. Joseph Harpie
    860.258.7832
    Brien T. Day
    860.258.7831    		 Linda L. Wieleba
    860.258.7894

    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's Application

  • Other Helpful Documents:

    Personal Financial Statement
    Comprehensive Business Plan Outline
    Financing Business Plan Outline