Gov. Dannel P. Malloy opened the bank of Connecticut to Cannondale this week, providing the bicycle maker with a $3 million loan, $2 million of which will be forgiven, if the company creates 75 jobs when it moves from Bethel to Wilton.
While plenty of people are down on Connecticut, it ranked for the sixth worst place to do business according to a recent survey of CEOs, Malloy has been willing to put the state’s money where his mouth is and give it to companies to stay and expand here.
(Malloy likes to say Connecticut is open for business.)
Cannondale, a division of Montreal-based Dorel, plans on using the money to purchase office equipment and IT systems when it moves 145 employees to the new office in Wilton.
The bond commission will have to approve the deal, which provides the loan over 10 years at 2 percent interest. But, if Cannondale creates 75 new jobs over the next four years, the state will forgive $2 million.
Dorel, Cannondale’s parent corporation, reported on Thursday net income of $22.3 million for the first quarter of this year. Bad weather hurt bicycle sales and cut into revenue the company reported. Besides Cannondale, Dorel owns several prominent bike brands, including Schwinn and Mongoose.