Section 108 Loan Guarantee Program

The Section 108 Loan Guarantee Program (Section 108) provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. Communities can use Section 108 guaranteed loans to either finance specific projects or to launch loan funds to finance multiple projects over several years.

Section 108's unique flexibility and range of applications makes it one of the most potent and important public investment tools that HUD offers to state and local governments. It is often used to catalyze private economic activity in underserved areas in cities and counties across the nation or to fill a financing gap in an important community project. The program's flexible repayment terms also make it ideal for layering with other sources of community and economic development financing including, but not limited to, New Markets Tax Credits (NMTC), Low Income Housing Tax Credits (LIHTC), and Opportunity Zone equity investments.


Featured Resources & Topics

Section 108 Application Tool

Section 108 Loan Guarantee Program Application Tool

The Section 108 Loan Guarantee Program Application Tool lists the general elements that states and local governments seeking to apply for Section 108 loan guarantee assistance should include in an application to HUD.


Program Design and Application Process

Program Design and Application Process

The Program Design and Application Process webinar describes how Section 108 can serve as an important financing tool in targeting reinvestment for economic development, public facilities and improvements, and housing rehabilitation.


Section 108 Underwriting Guidelines for Income-Producing Projects

Section 108 Underwriting Guidelines for Income-Producing Projects

The Section 108 Underwriting Guidelines for Income-Producing Projects assists Section 108 recipients in underwriting third party loans that finance the development of income producing properties.


Explore CDBG

Explore CDBG

The Explore CDBG collection of products helps grantees: create transformative impact in your community, improve the lives of residents, especially those with low and moderate income levels; develop strategies that bring partners and resources together; and implement your program effectively. 

 

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Mailing List

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NewCDBG Program Update

CDBG Program Updates, previously sent to Field Offices, are now available.

Questions?

Are you a community interested in applying? Please contact Section108@hud.gov with any questions regarding the program or the application process.

Section 108 Project Summaries

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