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What We Offer
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*Alternative Rate-of-Tax Exemption for Manufacturing
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*Business Personal Property Tax Incentive
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*Private Activity Bonds
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*Rapid Response Team
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*Retail Enhancement Program
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*Section 108 Loans
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P.O. Box 1575 Mail Code 640
30 S Nevada Avenue, Suite 604
Colorado Springs, CO 80903
Phone: 719-385-5955
Fax: 719-385-5475
Email: EconDevMain@spring. . .





City of Colorado Springs / Economic Vitality / What We Offer / Section 108 Loans

Section 108 Loans

The City of Colorado Springs Section 108 Loan program, in compliance with US Department of Housing and Urban Development (HUD) regulations, provides a pool of up to $14 million for low-interest loans that meet HUD's criteria for economic development activities and projects.

Section 108 Loan Advantages:

  • Job creation requirement = at least 1 job for every $35,000 borrowed; at least 51% of those jobs filled by employees at or below low-moderate income levels
  • Promote employment in areas with residents who fall at or below HUD's definition of low-moderate income
  • Available to qualifying for-profit and not-for-profit businesses and organizations
  • Low-interest financing for projects that meet specific requirements
  • 20-year (maximum) repayment term
  • Up-front incentive, rather than an after-the-fact rebate
  • HUD considers the Section 108 Loan program "one of the most potent and important public investment tools that HUD offers to local governments."  

Examples of Eligible Projects per HUD Regulations:

  • Large-scale development projects
  • Acquisition of real property
  • Construction, reconstruction, or installation of public facilities (including street, sidewalk, and other site improvements)
  • Rehabilitation of publicly-owned real property
  • Priority for projects located in blighted and/or Urban Renewal Areas
  • Housing rehabilitation
  • Projects and activities that meet urgent needs of the community 

City staff and Section 108 Loan Committee members evaluate the borrower's credit-worthiness.  The company may borrow up to 80% of its assets and must have sufficient net income to pay 1.5 times the monthly debt service.

City Council makes the final determination about granting a Section 108 loan.