Originating with the Department of Housing and Urban Development (HUD), and based on the federal Community Development Block Grant (CDBG) program, the Village welcomes applications from qualifying small to midsize businesses for its Section 108 Loan Program. Prior to applying, a prospective loan applicant should first meet with Village staff. Eligible Section 108 Loan activities include acquisition, rehabilitation, operating capital, and the purchase and installation of equipment. Interest rates are favorable.
Each Section 108 activity must be CDBG-eligible and must create and/or retain permanent full-time jobs, at least 51 percent of which must be held by or made available to low and moderate income persons. Also, one low and moderate income full-time equivalent job must be created or retained for every $35,000 invested for a Section 108 loan activity.
Businesses seeking a Section 108 loan are expected to have additional sources of funding for the proposed economic development activity. Each loan application will go through an intensive and thorough review process based on accepted underwriting standards and HUD guidelines in order to minimize risk. Various fees and other costs apply.
See the Section 108 Loan Program Basics flyer and the most recent HUD Income Limits table indicating what constitutes low and moderate income persons. For more information, contact Mark Dwyer at 708.358.5416 or email@example.com.