HUD No. 22-006
in order to launch
January 12 2022
HUD announces $14 million loan guarantee for Palm Beach to help businesses grow and create jobs
The loan guarantee will support job creation and retention that mainly benefit low and middle income people
WASHINGTON – The US Department of Housing and Urban Development today announced a $14 million loan guarantee for Palm Beach County, Florida, to provide financing to companies expanding or establishing business operations in Palm Beach County. As a condition of the funding, the province will require that at least 51% of jobs created or retained by these businesses must be filled by low- and middle-income people residing within the province.
“We begin this year by reiterating the Community Development Block Grant’s commitment to building strong, resilient communities and meeting the needs of low and middle income families across this country,” Arthur Jemison, Senior Deputy Assistant Secretary, Office of Planning and Community Development. “This loan guarantee will demonstrate how HUD’s programs and resources can enhance businesses, especially those owned by minorities and those with low and middle incomes, in Palm Beach County and beyond.”
“Palm Beach County thanks HUD for its commitment to our community and business owners,” Palm Beach County Commissioner Melissa McKinley said. “Thanks to the $14 million loan guarantee, our county will continue to attract businesses, create more jobs, and create equal opportunities for all residents. It has been beneficial to all corners of Palm Beach County, especially our rural communities in the Glades.”
Loan Guarantee Assistance was granted through the Section 108 Loan Guarantee Program (Section 108), which provides Community Development Grant (CDBG) recipients with the ability to benefit from annual grant allocations to access flexible, low-cost financing for economic development, housing, utilities, and infrastructure projects. The county will use the added Section 108 loan money to replenish its existing loan pool to continue the successful loan fund project.
To date, Palm Beach County has provided 50 Section 108 loans to for-profit businesses creating more than 2,000 jobs. Sixty percent of loans were disbursed in low- and middle-income communities, and 82 percent of loans were disbursed to minority beneficiaries. The average loan amount was about $507,000 and more than 2,000 jobs were created.
The Loan Guarantee Program, Section 108, allows local governments to tap five times their existing CDBG grants into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investment, such as Section 108 loans, can stimulate private economic activity, providing resources or confidence that private businesses and individuals may need to invest in troubled areas. Read more about HUD’s Section 108 Loan Guarantee Program.
With the continuing need for economic recovery and community development, HUD’s Section 108 program serves as an important source of federal funding that helps advance projects and build strong, sustainable, and inclusive communities.