Here's How Lamont Wants To Help Small Businesses In 2020

HARTFORD, CT — Gov. Ned Lamont unveiled his proposal to retool Connecticut's business assistance programs. The aim of the proposal is to help businesses grow, but to better protect taxpayer dollars that are used.

A performance-based incentive plan called Jobs CT would give companies a 25 percent rebate on withheld taxes if they create 25 or more full-time jobs from new employment up to seven years. Those in the state's opportunity zones could retain 50 percent of the withholding. Salaries must be 85 percent of the median household income in the municipality where the jobs are located.

The jobs must be in the following industries:

· Aerospace/defense
· Clean energy/renewables
· Corporate headquarters
· Distribution and logistics
· Entertainment and digital media
· Financial services
· Information technology
· Life sciences
· Manufacturing
· R&D facilities

Lamont's Small Business Express 2.0 plan is similar to the state's Small Business Express Program established in 2011. The original plan was supposed to bridge until the banking sector recovered from the Great Recession when banks weren't lending.

Lamont instead wants to work with banks to lend their money instead of the state's. The plan would use the existing Capital Access for Business loan guarantee program that is similar to Rhode Island and Massachusetts where the state shares some of the credit risk with the lender.

The state would also work with community development financial institutions to provide investment in revolving loan fund programs for high-risk credit profiles.