Programs and tax credits (4) offered by the State of CT Department of Economic and Community Development (DECD)

and

Programs (2) offered by the State of CT Department of Labor

State of CT Department of Economic and Community Development (DECD)

1.  Small Business Express Revolving Loan Fund Program – This programs main focus is to provide CT small businesses with access to capital. As we all know or have heard, it is very difficult to obtain bank financing in today’s economic climate and many times it takes a long time to obtain the funding all the while jumping through a lot of hoops.  This is the one program that is not job creation sensitive.  This a loan (must be paid back) funding program that in most cases will be reviewed, approved and funded within 30 days of complete application submission!  Click here for contact information and application details including an online application! 

 Eligibility

• Employ not more than 50 employees
• Connecticut-based business with operations in Connecticut
• Registered to conduct business in this state for at least 12 months
• Be in good standing on all state and local taxes

Priority of This Program

• Economic-based industries including, but not limited to, precision manufacturing, business services, green and sustainable technology, bioscience and information technology sectors.

Eligible Expenditures

• Purchase of machinery and equipment
• Construction or leasehold improvements
• Relocation costs
• Working capital
• Other business-related expenses as authorized by the Commissioner of DECD

Terms and Conditions

• Loan amounts from $10,000 to a maximum of $100,000
• Up to 4% interest rate
• Maximum 5-year term
• DECD determines loan terms, conditions, and collateral requirements in a manner that prioritizes job growth and retention

2.  Small Business Express Job Creation Inventive Program – This is another loan program (must be repaid) that is job creation sensitive.  This loan provides for a larger borrowing limit than #1 and this loan may be forgiven in part or in whole.  This loan may also qualify for a deferred payment arrangement.  Click here for contact information and application details including an online application! 

Eligibility

• Employ not more than 50 employees
• Connecticut-based business with operations in Connecticut
• Registered to conduct business in this state for at least 12 months
• Be in good standing on all state and local taxes

Priority of This Program

• Economic-based industries including, but not limited to, precision manufacturing, business services, green and sustainable technology, bioscience and information technology sectors.
• Businesses creating new jobs that will be maintained for at least 12 consecutive months.

Eligible Expenditures

• Training
• Marketing
• Working capital
• Other business-related expenses as authorized by the Commissioner of DECD

Terms and Conditions

• Loan amounts from $10,000 to a maximum of $250,000
• Up to 4% interest rate
• Maximum 5-year term
• Commissioner may:
  • Defer loan payments
  • Forgive all or part of loan based on business’ attainment of job creation goals!
• DECD determines loan terms, conditions, and collateral requirements in a manner that prioritizes job creation and retention

 3.  Small Business Matching Grant Program – This program is not a loan, it’s a grant!  The program focuses on job growth not job creation.  For example, if you have a plan to expand your businesses by opening another location or expanding your current line of business or simply to purchase some machinery that would require the hire of an additional employee – this grant program is phenomenal.  Now, the only catch is that this grant is a matching grant so this means you will only be awarded what you are also investing yourself.  If you have $10,000 in cash to invest then you will qualify for $10,000 in grant money.  It doesn’t appear to exclude funding from other sources as qualifying for your investment piece.  So, maybe this is a nice compliment to bank financing. Click here for contact information and application details including an online application! 

Eligibility

• Employ not more than 50 employees
• Connecticut-based business with operations in Connecticut
• Registered to conduct business in this state for at least 12 months
• Be in good standing on all state and local taxes

Priority of This Program

• Economic-based industries including, but not limited to, precision manufacturing, business services, green and sustainable technology, bioscience and information technology sectors.
• Business is likely to maintain job growth

Eligible Expenditures

• Training
• Working capital
• Purchase of machinery and equipment
• Construction or leasehold improvements
• Relocation within the state
• Other business-related expenses as authorized by the Commissioner of DECD

Terms and Conditions

• Grant amounts from $10,000 to a maximum of $100,000
• Business must match state grant award dollar for dollar
• DECD prioritizes on likelihood of applicant maintaining job growth

4.  Job Expansion Tax Credit (JET) – This is a tax credit program for Connecticut businesses that have created new full-time jobs and have hired between January 1, 2012 and before January 1, 2014.  Click HERE to open the WORD document for application submission.

Eligibility

• Businesses with under 50 employees must hire at least 1 new, full-time employee
• Businesses with 50 to 100 employees must hire at least 5 new, full-time employees
• Businesses with over 100 employees must hire at least 10 new, full-time employees

Tax Credits Available

• $500 per month for each new full-time job created
• $900 per month for each new full-time job created for employees receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits, or is a veteran employee who, at the time of hiring, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces

Taxes to Apply the Credit to

• Income tax under chapter 229 of the general statutes
• Corporation business tax under chapter 208 of the general statutes
• Insurance premiums tax under chapter 207 of the general statutes
• Utilities company tax under chapter 212 of the general statutes

Application Process/Next Steps

• Eligibility application is submitted by the applicant
• Eligibility review is then conducted by DECD
• Tax Credit Eligibility Letter is submitted to the applicant
• DECD will provide the applicant with the DECD reporting Form JET-1 after the end of the applicant’s fiscal year
• Certificate of Eligibility is issued for tax credits earned based upon a net increase in jobs above the applicant’s baseline employment

Department of Labor Step Up Programs (2)

The Department of Labor has their own set of programs that are designed to promote job creation as these programs apply to “new hires” only.  You may only utilize one program for each eligible new hire. 

We highly recommend calling Rina Bakalar, Executive Director, Office of Workforce Competitiveness at 860-263-6523 or Mark Polzella, Director, CTDOL Employment Services at 860-263-6572 for assistance with understanding and how to satisfy the worker eligibility requirements.

1.  Subsidized Training and Employment Program – this a wage subsidy program with new hires for 6 months (up to $20 per hour, not including benefits)

Worker Eligibility

• Unemployed prior to hire
• Resident of municipality that has an unemployment rate equal to or higher than the state rate as of September 2, 2011, (8.9%) or resides in a town with a population of 80,000 or more.  Visit the website to view Local Area Unemployment Statistics (LAUS)
• Adjusted family income equal to or less than 250% of the federal poverty level

Employer Eligibility

• Small business or manufacturer with less than 50 full-time workers
• Connecticut based business with operations in Connecticut
• Registered to conduct business in Connecticut for not less than 12 months
• Business must be in good standing with the payment of state and local taxes

Program Incentives

• Month 1 – 100% subsidized
• Month 2 – 75% subsidized
• Month 3 – 75% subsidized
• Month 4 – 50% subsidized
• Month 5 – 50% subsidized
• Month 6 – 25% subsidized 

2.  Small Manufacturer Training Grant Program – This program applies to small manufacturing companies only, they’ve hired or will hire an unemployed worker, AND they need to provide on-site training for this new worker.

Worker Eligibility

• Unemployed prior to hire
• Resident of municipality that has an unemployment rate equal to or higher than the state rate as of September 2, 2011, (8.9%) or resides in a town with a population of 80,000 or more.  Visit the website to view Local Area Unemployment Statistics (LAUS)
• Adjusted family income equal to or less than 250% of the federal poverty level

Employer Eligibility

• Small manufacturer with less than 50 full-time workers
• Connecticut based manufacturer with operations in Connecticut
• Registered to conduct business in Connecticut for not less than 12 months
• Business must be in good standing with the payment of state and local taxes
• Training must be able to take place on-site at the business site

Program Incentives

• Month 1 – $2,500
• Month 2 – $2,400
• Month 3 – $2,200
• Month 4 – $2,000
• Month 5 – $1,800
• Month 6 – $1,600