Innovative Financing through CBIA

Small Business Loan Guarantee Program - Also known as URBANK, this program can help small and entrepreneurial businesses gain access to financing that would otherwise be unavailable by greatly reducing the risks to the lender. This fast, hassle-free program features automatic enrollment to $500,000 through one of the many banks that participate with CDA.

Direct Loans - This direct loan program provides up to $5 million in capital to Connecticut businesses that may not meet conventional lending criteria. With terms up to 20 years, this financing can be used for most general business purposes.

Participation Loans – CDA can purchase a participation in a private-sector loan and generally takes a subordinated position to the lender. This expands the bank’s capacity to meet the customer’s borrowing requirements, with pro-rata sharing of interest and no CDA fees.

Loan Guarantee Program - Designed to help private-sector lenders meet their client’s financing requirements, this program guarantees capital provided by a business’ lending partner. The guarantees can fully cover losses up to 40% of the principal balance and can be combined with financing and investments from other public and private sources.

Export Financing – CDA supports exports of Connecticut goods and services by small- and medium-sized businesses by turning their accounts receivable into cash and by expanding their overall access to financing. CDA can finance Connecticut exporters using a federal government guarantee from Ex-Im Bank as well as through its state lending programs. As an Ex-Im Bank Delegated Authority Lender, CDA can provide guaranteed financing up to $1 million per exporter without prior approval.

Energy Projects – Under the Financial Institution Partnership Program (FIPP) through the U.S. Dept. of Energy, CDA can expedite energy project transactions and utilize a federal government guarantee that covers up to 80% of project costs.

Tax Incremental Financing (TIF) – The TIF program creates funding for projects by using the future increases in tax revenues to finance the improvements that will create those gains. This program is generally used for Brownfield redevelopment and Information Technology projects.

Brownfields Redevelopment Financing – Both CDA and its subsidiary, the Connecticut Brownfields Redevelopment Authority (CBRA), can finance the redevelopment of environmentally contaminated industrial and commercial sites. Brownfield projects can be financed through direct, guaranteed and participating loans as well as through the Tax Incremental Financing program.

Sales & Use Tax Relief - To encourage and promote desirable economic development in the state, CDA can provide sales & use tax relief on the purchase of tangible personal property or services for qualified economic development projects.

Bonds – CDA offers traditional self-sustaining and industrial revenue bonds, as well as new Recovery Act bonds such as Recovery Zone Economic Development Bonds (RZEDBs), Recovery Zone Facility Bonds (RZFBs) and Qualified Energy Conservation Bonds (QECBs).