Best Grants for Rural Development in Connecticut

What does this program do?

It provides loans and grants to Microenterprise Development Organizations (MDOs) to:

• To help microenterprises startup and growth through a Rural Microloan Revolving Fund.
• Provide training and technical assistance to microloan borrowers and micro entrepreneurs.

Microenterprise Development Organizations must demonstrate experience in managing a Revolving Loan Fund, or:

• Certify that it or its employees have received education and training from a qualified microenterprise development training entity so that the applicant has the capacity to manage such a revolving loan fund.
• Demonstrate that it is actively and successfully participating as an intermediary lender in good standing under the U.S. Small Business Administration (SBA) Microloan Program or other similar loan programs as determined by the Administrator.

 What kind of funding is available?

• Grants are available to provide technical assistance to rural micro-entrepreneurs or microenterprises, up to $205,000 annually.
  • Funding at the requested level is not guaranteed, and at least 15 percent matching funds are required.

• Loans of $50,000 to $500,000 may be used for establishing a Rural Microloan Revolving Fund managed by the Microenterprise Development Organization.
  • Total aggregate debt is capped at $2.5 million.

What are the loan terms?

• Maximum term is 20 years.
• Two-year payment deferral.
• Must establish a loan loss reserve fund.

What terms are required on loans to ultimate recipients?

• Up to $50,000.
• Fixed interest rate.
• Limited to 75 percent of project cost.

How may the funds be used?

Microlenders may make microloans for qualified business activities and expenses including, but not limited to:

• Working capital.
• Debt refinancing.
• Purchasing equipment and supplies.
• Improving real estate.

Community Development Block Grant: Small Cities

"The Key to Connecticut's Community Development Future"

 Connecticut's Community Development Block Grant (CDBG) Program, also known as the Small Cities Program, provides funding and technical support for projects that achieve local community and economic development objectives. The Small Cities Program principally benefits low-and moderate-income persons. This program is only available to Connecticut towns and cities with populations of less than 50,000.

Funding for the Connecticut CDBG program is provided by the U.S. Department of Housing and Urban Development (HUD) under the guidelines of Title I of the Housing and Community Development Act of 1974, as amended. Eligible Activities must meet one of the following CDBG program National Objectives: benefiting low and moderate-income persons, eliminating slum and blight or addressing an urgent need.

The primary focus of the CDBG program is to benefit low-and moderate-income persons. The Connecticut CDBG program receives and distributes over thirteen million dollars each year. Since the state took over the administration of the CDBG program in 1982, over $325,700,000 has been invested in Connecticut communities. Communities participate in a competitive application process annually for CDBG funds to implement their proposed community and economic development projects.  

The Rural Business Development Grants in Connecticut provide essential funding opportunities for small and emerging businesses in rural areas. With two types of grants available—Opportunity and Enterprise—these funds can be utilized for various projects, including technical assistance, feasibility studies, and community economic development. Eligible applicants include rural public entities, such as towns and nonprofit corporations. The program aims to enhance the economic landscape while prioritizing smaller requests for funding.

The Community Facilities Grant Program in Connecticut provides essential funding for rural areas to develop vital community facilities. This program supports projects such as healthcare facilities, public safety services, and educational institutions, enhancing the quality of life in these communities. Priority is given to smaller or low-income communities, ensuring equitable access to resources. Eligible applicants include public bodies and non-profit organizations, fostering local development and infrastructure improvements.