Loan guarantee will provide financing for the rehabilitation and renovation of a commercial property that will retain current jobs and create new employment opportunities.
The U.S. Department of Housing and Urban Development (HUD) today announced a $1,100,000 loan guarantee to Berks County, Pennsylvania to assist the Berks County Nonprofit Development Corporation (BCNDC) with the financing of the rehabilitation of a commercial property in Oley Township. The proposed project will renovate the commercial property into four separate commercial spaces. The loan guarantee will retain current jobs and create new employment opportunities in a service area that is primarily residential and low- and moderate-income.
“This loan guarantee underscores the Community Development Block Grant’s national objective to benefit low-and moderate-income communities,” said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “This project will create new employment opportunities for this community, which is in line with HUD’s commitment to strengthening communities nationwide.”
The loan guarantee assistance was awarded through the Section 108 Loan Guarantee Program (Section 108), which 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.
This project will meet the Community Development Block Grant national objective of benefit to low- and moderate-income persons in a target area. The project will create or retain approximately 24 full-time jobs based upon full renovation of the commercial complex.
The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG award into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investment, such as Section 108 loans, can spur private economic activity, providing the resources or the confidence that private firms and individuals may need to invest in distressed areas. Read more about HUD’s Section 108 Loan Guarantee Program.
As the need for economic recovery and community development continues, HUD’s Section 108 program serves as a critical source of federal financing that helps to move projects forward and build strong, sustainable, inclusive communities.
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