HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES $40 MILLION LOAN GUARANTEE TO ILLINOIS
Federal loan guarantee to support state's community loan fund
CHICAGO - U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $40 million loan guarantee to Illinois to capitalize the state's Economic Development Loan Fund. This state-administered loan fund will distribute the guaranteed loan funds to communities throughout the state to provide financing for a variety of activities in support of economic development projects.
"HUD's Loan Guarantee Program can be a powerful tool to drive economic development in underserved areas. The state will use this money to create jobs and support economic development throughout Illinois" said Riley.
This HUD-assisted loan fund will benefit low- and moderate-income persons by providing new job opportunities in Illinois.
On February 28, 2013 HUD awarded a $30 Million Loan Guarantee to Cook County to assist in financing sustainable economic development projects within the county.
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions, to provide seed money, or to simply boost confidence that many private firms and individuals need to invest in distressed areas. It allows them 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.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov. You can also follow HUD on twitter @HUDgov, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's Email List.