$25M Fund Would Help Modernize Connecticut Manufacturing, Gov Says

Companies that locate in the 42 communities known as historic manufacturing hubs would be given priority to receive funds for modernizing production, purchasing equipment, developing new technologies, and training workers under a proposal introduced by Connecticut Gov. Dan Malloy.

The Advanced Manufacturing Fund would be administered by the Department of Economic and Community Development with support from an advisory committee that includes industry experts. With an initial commitment of $25 million, expected to last two years, companies could apply for funds to grow and modernize operations and equipment. Funds also could be used to attract new companies to the state and support universities’ efforts to increase federally funded research activity, according to a press release. By giving priority to towns with a history rich in manufacturing, the governor hopes to help revive distressed communities and address high unemployment rates in those areas. Funding is included in the FY15 governor’s midterm capital budget adjustments.

Gov. Malloy also announced $100 million in additional funding for the Manufacturing Assistance Act (MAA), a program that provides incentive-driven direct loans for projects with strong economic development potential. This program is much broader than the newly proposed fund, however, which is geared toward smaller firms in the manufacturing sector. Under the MAA, larger companies can apply for funds to conduct feasibility studies, infrastructure improvements, and other business expansion and retention expenditures.

Budget documents are available at: http://www.ct.gov/opm/lib/opm/budget/2015midterm/budget/final_2015.pdf.