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.