Part B · Startup-relevant scheme
HUD Section 108 Loan Guarantee Program (Section 108)
Department of Housing and Urban Development
Loan / Credit
Growth / Scaling
Section 108 lets Community Development Block Grant recipients pledge future CDBG allocations to back a HUD-guaranteed loan, most commonly used for economic-development projects that create or retain jobs.
Type of support
Loan / Credit
Best suited for
Growth
Headline amount
Up to 5x the jurisdiction's annual CDBG grant
How much
Varies by jurisdiction's CDBG allocation
Objectives
Give distressed communities access to large-scale, low-cost financing for business and infrastructure projects that wouldn't otherwise pencil out, backed by the federal government's credit.
Who can apply?
- Applicants are CDBG-entitlement cities/counties (or states on a locality's behalf), not individual businesses directly.
- A business benefits by being the beneficiary of a city/county-sponsored Section 108 economic-development loan.
What do you get?
- Borrowing capacity up to 5x the jurisdiction's annual CDBG grant.
- Used for business expansion/retention, public facilities, infrastructure, and housing rehab.
- Federal guarantee lowers the effective borrowing cost.
How to apply
Businesses don't apply to HUD directly — approach your city or county's community/economic development department about an active or potential Section 108-backed loan program.
Key links
Details as most recently confirmed against the official source linked above. Deadlines, amounts and windows change — verify on the official portal before applying.