NORWALK, Conn. – State Senate Majority Leader Bob Duff (D-Norwalk) joined Syd Kain, president of Sovereign Home Health Connecticut,at the company’s Norwalk headquarters to tout the state’s InvestCT program, formerly the Insurance Reinvestment Fund, which helped Sovereign Home Health create 40 jobs.
“InvestCT is a little known initiative that is successfully creating jobs in Connecticut,” Duff said. “Nearly 100 small businesses have utilized InvestCT to create and retain more than 2,600 jobs. For every $1 dollar of tax credit invested, $2.21 is returned to the state. This is another example of how we are moving Connecticut’s economy forward.”
InvestCT allows insurance companies to earn tax credits based on investments they make in high-growth Connecticut businesses. The program targets investments in green energy, manufacturing and growth in urban centers. In order for the insurance companies to receive the tax credit, the businesses they invest in must reach predetermined job-creation and retention goals.
“Anyone who has created a business or runs a business knows that having cash and access to capital to run and grow the business is critical,” Kain said. “The biggest challenge for small businesses is that banks aren’t lending to small- and medium-sized businesses. Sovereign went to several banks, many times – big national banks and some of our local banks – banks with which I’ve personally had a 15-year relationship, and when we asked for a line of credit or a business loan, the answer was always ‘No.’
“Then I met with Enhanced Capital. They saw my track record in business and my desire to help seniors age in place, and they very quickly said ‘Yes.’ Because of Enhanced Capital and InvestCT program, we were able to put Sovereign Home Health of Connecticut on a growth course.”
Last June, Duff and Senate Democrats successfully pushed to recapitalize the program with a new investment of $150 million. Since 2010, the program has dispersed the original $200 million to nearly 100 companies.
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