Frequently Asked Questions (FAQs)
How is CIC different from banks and other funding sources? ▼
Banks are for-profit entities chartered by the government (federal or state), and primarily look to maximize returns to their shareholders. CIC is a private, non-profit economic development lender. CIC considers non-traditional collateral and offers flexible loan structures. The rates and fees are competitive with banks for similar loans. Unlike banks, CIC manages more than the loan process; the staff also provides business counseling, training and technical assistance. So, borrowers get the financial expertise and guidance to help their business grow. CIC receives its funding from the Small Business Administration (SBA), so loan applicants must meet various eligibility criteria for the MicroLoan programs.
Why should a borrower get a loan from CIC? ▼
With CIC, a borrower gets leadership on all steps of the loan process from people who know how to manage all the stakeholders, to achieve results for everyone involved. CIC streamlines the loan process to a unique level of accuracy and efficiency. By working with CIC, borrowers connect to other experts and opportunities throughout Connecticut. CIC’s business counselors have experience in almost every business and business related issue. CIC loan officers bring more than 50 years of banking industry experience to clients.
How much can be borrowed and for how long? ▼
CIC will make loans for up to $50,000, depending on the needs of the business. Repayment terms are flexible based on cash flow and use of funds.
Is a credit history important? ▼
Business owners must have a good personal credit history. Any incidents of poor credit need to be explained. Business owners must also demonstrate good character, management expertise and commitment to their business. Before applying for a loan, borrowers should check their credit history and clear up any mistakes that may adversely affect the ability to borrow money. The service is available annually to individuals free of charge. Check Credit History.
Does a borrower need collateral? ▼
Yes, a borrower will be asked to pledge their business assets to secure a loan.
Does a borrower need a business plan? ▼
A business plan is necessary for start-ups, and can be useful for existing businesses, especially when major changes are planned. A business plan outline is available in the Planning Tools section, and CIC business counselors are available to help borrowers write the plan. The plan doesn’t have to be lengthy, it just needs to outline the goals and business direction.
Can CIC business counselors write the business plan for the ▼
The staff will provide excellent advice on how to write a business plan, and will review drafts and final copies. However, they cannot write it for you. CIC hosts seminars and workshops on business planning. Visit News and Events to learn more.
How about confidentiality? What happens if I provide financi ▼
All client information is strictly confidential.
How long does the approval process take? ▼
Allow 90 days from application to closing to secure a loan.
Is a business required to be located in Connecticut to quali ▼
Yes, a business must operate in the state of Connecticut to qualify for a CIC SBA 504, MicroLoan or Childcare MicroLoan.
Is there a fee to apply for a loan? ▼
No. CIC does not charge an application fee.
How much does it cost to discuss business questions with a b ▼
These services are free to prospective borrowers.
Does CIC provide grants? ▼
No, CIC provides loans to qualified applicants.
What is CIC’s area of operation? ▼
Connecticut and Rhode Island.
How does a borrower apply for a loan? ▼
Contact CIC and inquire about financing.
CIC is an economic development lender contributing financial expertise and practical guidance to small business entrepreneurs in Connecticut and Rhode Island who have powerful ideas and need more power to grow them.