HOME   |   CONTACT   |   MY BUSINESS TOOLS    Facebook Twitter LinkedIn Google+ Subscribe to MBDA Newsletter

You are hereHome > Blogs > asowah's blog > Connecticut and Illinois Invest in Minority Business

Connecticut and Illinois Invest in Minority Business


Printer FriendlyPrinter Friendly
Blogged By: 
Terry Richards
Created on August 15, 2013

State of Connecticut Invests $2M for Minority Business Assistance Program

On July 24, 2013, Connecticut Governor Dannel P. Malloy announced that the State of Connecticut will provide $2 million to support minority contractors through the Hartford Economic Development Corporation (HEDCo).

The program will be designed to help businesses obtain surety bonds for capital construction. It will also provide a revolving loan fund to help minority contractors cover costs incurred while awaiting payment during the construction phase of projects. HEDCo already administers a similar bonding guaranty program that was created in 2006. Under the program, 110 bonds totaling $12.4 million have been guaranteed.

This represents the latest move by the state to bolster its growing minority-owned business community which comprises 12 percent of state businesses. Connecticut already requires 25 percent of funding allocated for public building projects, highway construction and the purchase of goods and services must go to small businesses. Of that amount, 6.25 percent must go to minority-owned businesses, women-owned businesses, or disadvantaged businesses with a net worth less than $750,000.

Illinois Establishes Revolving Loan Fund

On July 30, 2013, Illinois Governor Pat Quinn signed into law House Bill 3267, which is designed to assist minority and women-owned businesses compete for state construction contracts.

The new law creates the Disadvantaged Business Revolving Loan Program, which allows the Illinois Department of Transportation (IDOT) to give low-interest loans to certified minority- and female-owned businesses that have construction contracts with IDOT.

To establish the fund, the State will provide an initial investment of $3 million. After that, it is anticipated that the fund will be self-sustaining through payments on existing loans.

Did you know...

The percentage of clients with annual revenues in excess of $500,000 increased over the last five fiscal years.
Graph for MBDA Client Portfolio made up by SGI Clients

What MBDA Does