To promote growth in both emerging and maturing industries as well as small business start-ups and expansions.
Applicants for this program must demonstrate a financing gap to access this program. The applicant must demonstrate the ability to manage anticipated debt service and indicate a financial institution willing to finance the project, subject only to the guarantee.
This innovative $29 million program, funded by HUD and the CDBG program, is administered by the City of Worcester's Executive Office of Economic Development. The Section 108 Loan Guarantee program assists projects that conventional lenders may consider too risky to support. The maximum Section 108 Loan Guarantee amount is 80% of the conventional loan to value amount (including bank financing), or the minimum amount required to make the project move forward. The program does not provide equity financing and cannot provide a 100% guarantee.
In order to be eligible for CDBG funding, each applicant must qualify as meeting one of the following national objectives of the CDBG program: