Loans help Conn. shops weather virus storm

When a large swath of Connecticut was forced to shut down during the early days of the coronavirus pandemic, state officials quickly created an emergency loan program from scratch, hoping to help small businesses — from pizza shops to yoga studios — weather the economic crisis.

Months later, records obtained by The Associated Press through a Freedom of Information Act request show the fledgling Connecticut Recovery Bridge Loan Program ultimately funded 2,123 one-year, no-interest loans, averaging $19,705 a piece. Because of the massive flood of applications, officials decided to cap loan amounts at $37,500 — half of the $75,000 originally promised when the program was launched in March — to help twice the number of businesses.

The change was made after officials had to stop accepting applications the day after the program was announced and decided to double the $25 million investment to $50 million, underwritten by the state’s venture capital organization.

“I think we made the right decision, and I still to this day think it was the right one. We wanted to touch as many businesses as possible,” said David Lehman, commissioner of the Department of Economic and Community Development.

Ashley Krauss, owner of A Little Something White bridal salon in Darien, said the $33,330 loan she received from the state, coupled with a forgivable federal loan, helped keep her seven employees working during the two months when there were no sales.

“I didn’t furlough one person, let go anybody,” she said. “I’m proud that I was able to do that. I’m appreciative of the money I received because that was literally the thing that kept me up at night while this was going on.”