State offers Subsidized Loans To Three Small Companies

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PayVeris, a software company that provides products to banks for online transfers and payments, is borrowing $1.2 million from the state at 2 percent interest to buy computers and software and to pay operating expenses as it expands. PayVeris is investing $3.5 million in its expansion, and plans to add 42 jobs over the next five years. The Wethersfield company currently has eight workers.

Fortress Risk Management, a Wethersfield company founded in 2010 that provides banks and credit unions with fraud detection, is planning to hire 21 people in the next two years, and another 25 people by 2018, is receiving a $750,000 loan at 2 percent to pay operating expenses and for equipment as it expands. Fortress Risk Management currently has no employees, it’s just run by its founder.

The announcement included laudatory quotes from politicians, such as one from Sen. John Fonfara, D-Hartford, who represents Wethersfield. “Helping small businesses like these to succeed is the key to getting our economy going again,” he said.

Fusion Paperboard, a cardboard manufacturer in Sprague, will borrow $3 million at 3 percent from the state so it can overhaul its paper machine and a turbine that provides power for the machine. The project will cost $6 million. Fusion Paperboard has 147 workers, and intends to hire 20 workers by 2016.  

All three loans have 10-year terms, and were approved by the Department of Economic and Community Development.

The state will borrow the money to fund the loans. The State Bond Commission is expected to approve the borrowing on April 26.

 

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4 thoughts on “State offers Subsidized Loans To Three Small Companies

  1. Jeff

    Any companies receiving these types of loans or other funding from the state should be required to pay back the loans immediately or refund the grants if the promised hiring does not occur.

  2. Hot Dam

    The story tells us that the State is going to “borrow the money to fund the loans”. Why not eliminte the “middle-man”, and just tell those 3 companies to go get their own loan, without the State getting involved ???

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