CDA

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

  • 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)

  • 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. Brownfields remediation and redevelopment

  • Amount: $250,000 to $5 million
  • 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
    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 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 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