
July 7, 2006 |
2006-R-0393 | |
STATE FINANCIAL ASSISTANCE FOR MANUFACTURERS | ||
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By: John Rappa, Principal Analyst | ||
You asked if a small, high tech manufacturer can obtain state financing for building or expanding a facility, purchasing machinery and equipment, training workers, and pay wages and benefits for new employees.
Several state programs can finance these activities, but no single program finances all of them.
CONNECTICUT DEVELOPMENT AUTHORITY (CDA)
CDA makes and guarantees loans for developing facilities, purchasing machinery and equipment, and providing working capital. A borrower qualifies for a working capital loan to pay wages and benefits for new employees hired to work in a new or expanded facility or operate new machinery and equipment installed in an existing one. Attachment 1 describes CDA's programs (www. ctcda. com).
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT (DECD)
DECD's Manufacturing Assistance Act Program (MAA) provides financing for training and retraining workers, developing facilities, acquiring machinery and equipment, purchasing supplies. As a rule, the department does not finance payroll and employee costs except on a case-by-case basis. Attachment 2 describes the MAA program (http: //www. ct. gov/ecd/cwp/view. asp?a=1097&q=253520&ecdNav=).
COMMUNITY TECHNICAL COLLEGES (CTC)
The CTC's Business and Industry Services Network helps businesses obtain job training services customized to meet their needs. The network can provide the training at a business' location or a CTC. The business must pay for the training. Attachment 3 describes the network's services (http: //www. commnet. edu/services/special_services. asp)
CONNECTICUT BUSINESS AND INDUSTRY ASSOCIATION (CBIA)
CBIA's training and consulting services include providing training programs in specific areas, such as fiber optics, lasers, and statistical quality control. The services also include identifying and accessing funds to cover job training costs. Attachment 4 describes CBIA's services (http: //www. cbia. com/training/default. htm).
CONNECTICUT DEPARTMENT OF LABOR (DOL)
PA 06-187 authorizes DOL to create a job training program to help businesses train their employees. It requires participating businesses to pay half the training costs. The program can include generic and specialized training. DOL must establish and run the program within available appropriations. The act took effect July 1, 2006, and DOL is preparing implementing regulations.
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