- Connecticut District Office of the U.S. Small Business Administration details how much COVID-19 relief funding Connecticut businesses have received
- The vast majority of the funds have come through the Paycheck Protection Program
- Legislation has also strengthened traditional SBA loan products and established targeted grant programs
Summary by Dirk Langeveld
Connecticut businesses have received more than $12 billion in federal aid through COVID-19 relief programs administered by the U.S. Small Business Administration, the SBA’s Connecticut District Office announced recently.
District Director Catherine Marx recently shared the data on how Connecticut’s businesses have benefited from the programs. The bulk of the aid came through the Paycheck Protection Program, which offered forgivable loans to help employers maintain payroll during government-mandated shutdowns and restrictions. More than 64,000 Connecticut businesses received $6.7 billion in PPP loans between its inception in March 2020 and the end of the initial funding rounds in August 2020.
After PPP was restored under the Economic Aid Act, enabling small businesses to apply for either a first draw or second draw loan, more than 50,000 additional loans totaling $3.1 billion were approved for Connecticut businesses. The program recently exhausted its available funding, with the exception of a set-aside for community financial institutions.
More than 36,000 small businesses in Connecticut have received $2.2 billion in Economic Injury Disaster Loans. These low-interest loans help small businesses to recover from disasters that affected their revenues.
Marx did not provide any figures for the Shuttered Venue Operators Grant program, which provides assistance to arts and cultural organizations, and the Restaurant Relief Fund, which provides grants to food and beverage businesses. However, the SBA has announced that it has issued more than 16,000 awards totaling more than $2 billion through the latter program.
Marx credited the success of the programs to the Connecticut District Office’s partnership with several partner organizations, including SCORE, the Small Business Development Center, the Women’s Business Development Council, the UHART Entrepreneurial Center/WBC, the Connecticut Department of Economic and Community Development, and several other business organizations.
Marx said the SBA will continue to support small businesses through its traditional loan products as well. She noted that the Economic Aid Act supports better access to capital by providing higher loan guarantees, fee waivers, and payment relief for the SBA’s 7a and 504 loan programs.
