CDBG Entitlement FAQ
Q

What are the security requirements for a Section 108 loan guarantee if the assets to be assisted with the loan are infrastructure such as neighborhood curbs, gutters, and sidewalk construction/reconstruction? 

Date Published: May 2015

Print ShareThis

A

The security requirements for Section 108 loans are determined on a case by case basis, as described in CFR 24 §570.705 (b). Generally, you can use liens on real property and equipment not directly associated with the loan, as this is one of the acceptable security requirement examples listed in §570.705 (b)(3). However, the exact details of your pledged assets and security requirements will need to be reviewed and approved by HUD after you submit your loan application.


Tags: CDBG Entitlement Program Economic Development

FAQ ID:

2226