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
Eligible applicants include the following public
- Metropolitan cities and urban counties (CDBG
- Non-entitlement communities that are assisted in the
submission of applications by states that administer the
- 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.
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.
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
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U.S. Department of Housing and Urban Development,
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.