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Section 108 Loan Guarantee Program

U.S. Department of Housing and Urban Development
Applications accepted on an ongoing basis

Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and physical development projects, including improvements to increase resilience against natural disasters.

This program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods.


Eligible applicants include the following public entities:

  • States
  • Metropolitan cities and urban counties (CDBG entitlement recipients)
  • Non-entitlement communities that are assisted in the submission of applications by states that administer the CDBG program
  • Non-entitlement communities eligible to receive CDBG funds under the HUD-Administered Small Cities CDBG program. The public entity may be the borrower or it may designate a public agency as the borrower.
Geographic coverage
Amount of funding

Loans typically range from $500,000 to $140,000,000 depending on the scale of the project or program. Under Section 108, project costs can be spread over time with flexible repayment terms, and borrowers can take advantage of lower interest rates than could be obtained from private financing sources.

Local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan amount as security for the loan.

Application process

Interested applicants should contact the local HUD office to begin the application process.

An overview of the application process and additional guidance are available on the program website.

Tagged as
Capital funding · Clinics · Community and economic development · Emergency preparedness and response · Healthcare facilities · Hospitals · Housing and homelessness

Organizations (1)

  • U.S. Department of Housing and Urban Development, view details

For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RHIhub does not take part in application processes or monitor application status.