(a) There is established a two-year pilot small and medium-sized business line of credit program under which Connecticut Innovations, Incorporated shall make loans and loan guarantees to small and medium-sized companies which have not more than two hundred employees, are located in the state, have a good credit history, operate profitably and are either (1) unable to obtain conventional financing without assistance under this program, or (2) need assistance under this program to begin or maintain operations. The corporation may establish additional criteria for such loans, including, but not limited to, whether such assistance would enable an applicant to create or retain jobs and whether the applicant exports goods and services out of the state.

(b) The corporation shall develop an accelerated application process for such program. Loans and loan guarantees under the program shall be for short-term working capital for a company’s day-to-day operations, administrative and payroll costs, advertising expenses, energy costs and supplies, and other similar types of expenses. No company may receive more than two hundred thousand dollars in loans or loan guarantees under the program. Payments of principal and interest on loans under the program shall be made to the corporation for deposit in the Connecticut Works Fund created by § 32-23ii.

(c) During the first year of the program the corporation shall make loans and loan guarantees and during the second year of the program the corporation shall monitor the loans and process payments from the loans.