HUD Grants Palm Beach $14M Loan Guarantee
The business-loan money, part of HUD’s Community Development Block Grant program, requires that 51% of new jobs go to lower-income county residents.
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced a $14 million loan guarantee for Palm Beach County, which can use the money to finance a new company or existing company expansion.
As a condition of HUD-backed financing, at least 51% of the jobs created or retained by these businesses must be held by county residents with low- and moderate-incomes.
“We begin this year by reiterating the Community Development Block Grant’s commitment to building strong, resilient communities and meeting the needs of low- and moderate-income households across this country,” says Arthur Jemison, principal deputy assistant secretary, Office of Community Planning and Development. “This loan guarantee will demonstrate how HUD programs and resources can strengthen businesses, especially those owned by minority, low- and moderate-income persons, in Palm Beach County and beyond.”
Palm Beach County Commissioner Melissa McKinlay thanked Jemison. “Thanks to this $14 million loan guarantee, our county will continue to attract businesses, create more jobs and create equal opportunity for all residents. It has been beneficial to all corners of Palm Beach County, especially our rural communities in the Glades.”
The loan guarantee was awarded through HUD’s Section 108 Loan Guarantee Program (Section 108), which helps Community Development Block Grant (CDBG) recipients access low-cost, flexible financing for economic development, housing, public facility and infrastructure projects.
To date, Palm Beach County has provided 50 Section 108 loans to for-profit businesses that created over two thousand jobs. Sixty percent of loans have been disbursed in low and moderate-income communities, and 82% to minority recipients. The average loan amount is about $507,000.
The Section 108 Loan Guarantee Program allows local governments to leverage five times their current CDBG award into federally guaranteed loans large enough to pursue physical and economic revitalization projects.
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