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If you are interested in applying for a Section 108 Guaranteed Loan, contact your local HUD office* in advance for help in preparing an application. The program has no forms, but the following is the process required (as described in 24 CFR 570.704, "Application Requirements:"

  1. Pre-submission and Citizen Participation Requirements:
    • Development of a proposed application.
    • Compliance with CDBG citizen participation public hearings.
    • Publication of the proposed application.
    • Preparation of the final application.
    • Inclusion of the final application in the Consolidated Plan.

  2. Application Submission Requirements:
    • Description of compliance with CDBG National Objectives and Eligible Activities.
    • Schedule for repayment.
    • Certifications.

Local Offices

After consulting with the local HUD office and the preparation of the final application, the local office will conduct a "due diligence and compliance review", where a Community Planning and Development representative will check to ensure compliance with the above process, as well as verify national objectives, eligible activities, and certifications. Once this review is complete, the office will forward the application to the Section 108 staff in HUD headquarters along with a recommendation of approval or disapproval.

HUD Headquarters

Upon arrival in HUD's main office, the application will be assigned to a staff underwriter, who will examine the application in detail. It is at this stage that the requested loan terms and additional security offered will be examined. It is customary for the staff reviewer to be in contact with the local HUD office representative as well as the Applicant in order to resolve questions or issues which may arise during the review.

Upon completion of the review, a Project Review Panel (consisting of headquarters staff and the local HUD office representative) will examine the application, suggest ways to resolve issues, request additional information, or recommend the application be approved. Once an application has received an approval recommendation, it is forwarded to the Secretary of HUD for final approval and release.


The length of time the application approval process takes depends on the individual application. For questions on a specific application, contact your local HUD office or the staff underwriter in HUD headquarters who is reviewing the application.

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