The Section 108 Loan Guarantee Program (Section 108) provides Community Development Block Grant (CDBG) recipient-communities with a source of low-cost, long-term financing for economic and community development projects. Section 108 financing provides an avenue for communities to undertake larger, more costly projects, where they may have limited resources to invest in upfront. Recipients can either finance specific projects or launch loan funds to finance multiple projects over several years. Section 108 can fund economic development, housing, public facilities, infrastructure, and other physical development projects, including improvements to increase their resilience against natural disasters.
Section 108 assistance can be deployed in two ways:
-Directly by the community or its governmental or non-profit partner to carry out an eligible project, or
-Indirectly with a community or its partner re-lending (or, in limited circumstances, granting) the funds to a developer or business to undertake an eligible project
Local Government; State Government
Eligible Recipients Detail:
Funds are allocated as a formula-block grant to states, or grantees can apply for CDBG as an Entitlement Community. Apply for CDBG funds through your state if not an Entitlement Community.
Building Infrastructure; Last Mile Infrastructure; Digital Skills Training
Eligible Purpose Detail:
Offers state and local governments ability to transform CDBG funds into federally guaranteed loans to pursue physical and economic revitalization projects.