HUD Approves $5 Million Loan Guarantee for Fort Collins
The City of Fort Collins has been approved for a $5 million Section 108 Loan Guarantee by the U.S. Department of Housing and Urban Development (HUD). Section 108 allows local governments to leverage their Community Development Block Grant to fund economic and community development projects.
Last December, City Council gave approval to submit an application to HUD for the loan. The application detailed the need for financial assistance and the City’s plan to make use of the funds, if approved. After a thorough six-month review by HUD, the City is now free to put the money to good use.
The City will use the Section 108 loan to create an economic development loan pool from which it will provide low-interest loans to local businesses. The $5 million is expected to leverage small-business retention and expansion efforts and will create at least 150 jobs for Fort Collins citizens. At least 51 percent of the jobs will be held or made available to low- and moderate-income persons. Eligible projects will go through a vigorous screening and underwriting process, and City Council will ultimately decide which businesses receive City assistance.
Contact Josh Birks, the City of Fort Collins Economic Advisor for a loan application and requirements, 970-221-6324 or amJpcmtzQGZjZ292LmNvbQ==.