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.
About the Program
Application
Process
Policy Guidance
Featured Resources
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
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
The Underwriting Guidelines for Business Loans for Section 108 Loan Guarantee Recipients assists Section 108 Recipients in underwriting loans that support business enterprises.
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.
Is HUD's Section 108 Loan Guarantee Program Right for My Needs?
View these new resources intended to provide communities with tools for developers and business owners to conduct high-level assessments to determine whether Section 108 financing could be an appropriate resource for their needs.
Project Profiles
Packing House Anaheim, California used $7 million of HUD Section 108 guaranteed loan funds to finance the restoration of a historic orange packing facility, originally built in 1919. The dilapidated building was rehabilitated into a food market with local vendors that has catalyzed economic development in Anaheim’s downtown.
Addington Ridge With $694,000 in Section 108 guaranteed financing, High Point, North Carolina acquired and improved a site in its Deep River neighborhood that it then sold to a developer in order to construct a 58-unit, affordable housing development.
Practice Yoga After a devastating fire forced a small business to relocate and left the building vacant for three years, Austin, Texas made a low-interest loan under its Family Business Loan Program with $150,000 in Section 108 guaranteed funds for the Practice Yoga studio to renovate the space and create 12 new, full-time jobs.
Green City Growers Greenhouse Cooperative Cleveland, Ohio lent $8M of Section 108 Loan Guarantee financing to remediate and redevelop 10.68 acres of an industrial/residential site into an employee-owned cooperative greenhouse that created 42 full-time jobs producing 2 million pounds of healthy greens and 200,000 pounds of fresh herbs annually.
Section 108 Loan Project Profiles View all of the project profiles which highlight case studies in the successful implementation of Section 108 projects.
Training
News and Announcements
CPD Income Eligibility Calculator Updated with FY 2022 Income Limits
Date Posted: June 15, 2022Update for CPD Income Eligibility Calculator Users
Date Posted: June 14, 2022 Date Posted: May 18, 2022 Date Posted: December 10, 2021 Date Posted: December 02, 2021New Supporting Local Climate Action Page Now Available on the HUD Exchange
Date Posted: November 18, 2021