CDA

URBANK

  • About the Program

    1. Banks can meet the financing needs of more small and entrepreneurial businesses
    2. URBANK provides the bank with loss protection on loans up to $500,000
    3. Can be coupled with loans or investments from other public- or private-sector sources

  • Eligibility:

    1. Any Connecticut business
    2. The bank is unable to approve the borrower's loan request without URBANK assistance
    3. URBANK-protected loans are not available for: Non-owner occupied real estate; Residential

  • Use of Proceeds:
    Any business purpose including:
    1. Working capital
    2. Machinery and equipment
    3. Purchase, construct, expand or upgrade facilities
  • CDA Program: URBANK loan guarantee
  • Amount: Up to $500,000
  • Terms and Fees:

    1. Loan maturity, interest rate and other terms determined by the bank–up to 15 years
    2. Debt service capability is evident
    3. One-time fees to the borrower and the bank of 1.5% to 2.5% each. Fees may be included in loan amount.

  • Benefits to Borrower:

    1. Access bank financing that is otherwise unavailable
    2. Fast and hassle-free, arranged by your banker
    3. No prepayment penalties

  • Borrower's Process:

    1. Discuss your business' financing need with your banker
    2. If the banker is unable to make the loan, suggest URBANK loan protection

  • Benefits to Banker:

    1. Retain or expand existing or establish new commercial lending relationship
    2. URBANK loan protection up to 44.5% consisting of:

    1. Cash loan loss reserves contributed by:
      1. Borrower (included in Terms & Fees) 1.5% to 2.5%
      2. CDA (not charged to borrower) 3.0% to 5.0%
      3. NEW: U.S. Treasury funds allocated to CDA will provide an additional match to the borrower's and bank's contributions of 3%-5%. 
    2. First-loss loan guarantee of 30% will be applicable to each transaction enrolled. 
      1. CDA will match the customer's and bank's contributions into a cash loss reserve account that accumulates and remains with the bank as protection against possible future URBANK portfolio loan losses.
  • Contact:

    CDA Officer John Lobon
    860.258.7825
    See our URBANK Lending Partners  

  • For Additional Information on All CDA Programs: Contact CDA by email.
  • Application:

    URBANK & URBANK Entrepreneurial Loan Filing Form with Affirmative Action Form