Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021
At a glance — The majority of businesses in the state of Connecticut are classified as small businesses. Almost 350,000 of these small businesses employ over 700,000 employees. These small businesses create more than 7,000 new jobs every year and make up 99.4% of the state’s total economy. It’s clear that small businesses are the backbone of this state. There are many lenders in the area that provide Connecticut small business loans to help businesses develop.
The Top Four Connecticut Small Business Loan Options
The biggest challenge that a small business owner faces is finding the best institution to acquire a loan. You have a few solid choices in the state of Connecticut.
1. Charter Oak
Charter Oak has come a long way since it started as a lending institution in 1939, growing into a billion-dollar company. It’s the biggest lending union in eastern Connecticut and one of the state’s leading financial institutions. Its long history of operation in the Connecticut area makes it a trusted institution for many small business owners.
Charter Oak offers various loans to Connecticut small businesses. Some of the benefits include easy application processes and quick decisions. Most of the loans offer flexible rates and terms, and payments depend on the type of financing that interests you.
You can also apply for the paycheck protection program through Charter Oak. These loans have a 1% interest rate and a maturity of five years. You don’t need collateral or any personal guarantees to qualify for the loan. The paycheck protection program is a loan that you take out through the Small Business Administration. If the COVID-19 pandemic affected your business, you can apply for a paycheck protection loan through Charter Oak. Contact any of the Connecticut branches for more information on any of the loans available to your business.
Community Investment Corporation (CIC) has been providing financial support to small businesses throughout Connecticut and Rhode Island for over 50 years. While CIC is not technically a bank, it works as an economic development lender, issuing both direct small business loans and loans in partnership with the SBA Program.
Under CIC’s direct loan program, MicroNOW, small businesses can apply to receive up to $15,000 within two weeks. These loan funding can then be used for virtually any business purpose, including purchasing equipment or inventory, refinancing debt, working capital, and more.
Through the SBA Program, CIC issues 504 loans between $250,000 and $5 million, microloans between $15,000 and $50,000, and Community Advantage loans valued between $50,000 and $250,000.
The Community Economic Development Fund is a nonprofit organization that helps businesses in Connecticut grow. Besides the various loans that the organization offers Connecticut small businesses, there are also plenty of resources that you can access.
The CEDF is another place where you can access an SBA loan. They also offer a specific loan program for women and minority groups. You can contact the Business Advisory Service that the CEDF offers to small business owners for advice and other solutions. The organization can assist you with your business plan and help you see if you qualify for a loan before applying to another institution.
The mission that the CEDF has is to educate small business owners, especially on financial aspects such as loans. This nonprofit has been serving the Connecticut community for more than 25 years. Before you commit to any small business loan, you should look at the CEDF website and see what they have to offer.
4. Liberty Bank
With over 60 branches throughout Connecticut, Liberty Bank is a well-known lender among local small business owners and entrepreneurs. In addition to standard business bank accounts and digital banking, Liberty Bank offers various small business loan programs.
For example, through their Express Business Loan program, you can apply for a term loan or a line of credit of up to $250,000 and receive an approval as quickly as in 24 hours. Liberty Bank also offers term loans valued between $10,000 and $1,000,000. These can be used to finance long-term financial needs or working capital, or to purchase fixed assets like vehicles and equipment.
Another financing option available through Liberty Bank is a government-guaranteed SBA loan, which offers competitive interest rates for long-term financing.