3,500 Conn. business closings in 1Q

Hartford (WTNH) - Nearly 3,500 businesses in the state closed in the first quarter of 2009, the highest drop since the state began tracking closures in 2000.

Many Connecticut businesses are struggling, but some are capitalizing on the recession by being creative. Day Moore creates handbags out of recycled materials, like billboards and bicycle inner tubes. Moore has teamed up with Susan Ashelford at her specialty shop, Given to Gauche, in Milford.

"I think small businesses are taking on the role of stepping in and taking over trying to formulate and make business where there wasn't any," said Moore.

Other businesses however, are struggling to stay afloat. The secretary of the state's office released it's first quarter numbers and they are grim. More than 3,000 businesses have closed since the first of the year, a 16-percent increase over the first quarter of 2008.

At a panel discussion today in Milford, Sen. Chris Dodd (D-CT) and Rep. Rosa DeLauro (D-3rd District) talked about the challenges that small business owners like Moore are facing.

"We've been reading that SBA loans are more accessible now, but we are not finding that to be true," Moore said.

Dodd and DeLauro assured business owners that $15 million of stimulus money has been dedicated to Small Business Administration loans.