Entitlement communities may access the Section 108 program through HUD. The program allows entitlement communities the ability to borrow funds guaranteed by Section 108 through pledging their current and future CDBG allocations (up to the loan amount) as security for the loan.
HUD provides additional security for the loan (as a loan-loss reserve or debt-service) to reduce the exposure of a community’s CDBG funds.
Economic Development Initiative
Economic Development Initiative (EDI) provides grants to local governments that can be used to enhance both the security of loans guaranteed through Economic Development Loan Fund and the feasibility of the large economic development and revitalization projects they finance. The guaranteed amount may be extended up to five times the community’s most recent CDBG allocation.
Eligible activities include: