An opportunity knocks on local businesses doors

From the mom and pop store on the corner to the multimillion dollar corporation, the current economic crisis in the United States has left businesses with no choice but

to reevaluate their operational structure and to establish priorities for coping in these difficult times. For those who have tried to acquire some working capital or to consolidate their debts, they have found that their local banks' criteria are now so strict that it is practically impossible to get a loan to save their businesses. However, there is an organization that is ready to help your business come out of the red and restructure - the Community Economic Development Fund (CEDF).

But nowadays, you need more than just loan funding to save your business. It is also necessary to have expertise and a solid organizational structure to boost your growth and to generate the capital needed not only to pay back your debt, but also to keep the financial outlook of your business viable and stable for the future.

The Community Economic Development Fund is a nonprofit organization dedicated to helping low-income business owners and minorities survive and thrive with financial and loan training, as well as business counseling.

In a partnership with Union Savings Bank, the CEDF will bring $4 million in loans to Danbury's small businesses, starting in May 2009. This initiative may save some small business owners who have simply given up on applying for loans at local banks.

The ability to borrow is not automatic, however. CEDF criteria mandate that your business operates legally, with all documentation up to date, besides other conditions, which you may learn by contacting the organization directly.

What really caught my attention, beyond the amount of money that will be made available here in Danbury, was the idea of helping business owners to manage their businesses in a more effective and knowledgeable manner, so the loan will help achieve the expected results.

Even if you have plenty of experience in your field, it is never a bad idea to learn new strategies that can help you strengthen your existing knowledge while opening new doors for the company's growth. And if your business grows, you will automatically generate more jobs in the market, more taxes for the municipality, and participate in helping to recover the country's economy.

The amount of the loans available from CEDF ranges from $35,000 to $500,000. There is also a provision that offers borrowers the opportunity to reduce their total interest if they attend and successfully complete the small business courses offered by the organization.

This means that the success of your business and the reduction on the interest rate depend on your efforts and your willingness to expand your business knowledge - a reasonable and fair arrangement that offers both the lender and the borrower added security, because they must work together to accomplish their mutual goals.

If you have been considering closing your business because of economic distress, before you take this drastic step, I believe it would be worth exploring this new community resource offered by the CDEF and Union Savings Bank. Funds are already available - within this month.

Finally, I would like to applaud and congratulate the Union Savings Bank President and CEO, John Kline, for this joint initiative with the Community Economic Development Fund that will help local business owners save their businesses.

For more information about the CDEF, read the article on page 22 of this issue.