Connecticut and Illinois Invest in Minority Business
|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.