CT HB05109

Repeals and replaces Section 32-261 to establish the Connecticut Works Guarantee Fund within the Connecticut Development Authority, effective July 1, 2012.

Authorizes the authority to issue loan and investment guarantees up to four times the fund balance, with individual guarantees not exceeding 40% of loan principal and total guarantees capped at 30% of all outstanding loans.

Limits guarantees to $10 million per single project and $10 million per borrower, with a maximum 25-year guarantee term; excludes guarantees for commercial real estate development and passive real estate ownership.

Establishes that bond proceeds from the Department of Economic and Community Development may be distributed to either the Connecticut Works Guarantee Fund or the Connecticut Capital Access Fund, as determined by the authority.

Adds new subsection (j) authorizing supplemental guarantees and loan loss reserve deposits for loans enrolled in the Connecticut Capital Access Fund small business assistance program without individual loan review.