HUD Announces $14 Million Loan Guarantee to Palm Beach to Help Businesses Grow and Create Jobs

HUD No. 22-006 HUD Public Affairs [phone]

FOR RELEASE Wednesday January 12, 2022

HUD ANNOUNCES $14 MILLION LOAN GUARANTEE TO PALM BEACH TO HELP BUSINESSES GROW AND CREATE JOBS
Loan guarantee will support job creation and retention that primarily benefits people with low- and moderate-incomes

WASHINGTON - The U.S. Department of Housing and Urban Development today announced a $14 million loan guarantee to the County of Palm Beach, Florida to offer financing to companies expanding or establishing business operations in Palm Beach County. As a condition of financing, the County will require that at least 51% of the jobs created or retained by these businesses must be held by people with low- and moderate-incomes residing within the county.

"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 moderate-income households across this country," said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development. "This loan guarantee will demonstrate how HUD programs and resources can strengthen businesses, especially those owned by minority, low- and moderate-income persons, in Palm Beach County and beyond."

"Palm Beach County thanks HUD for its commitment to our community and its business owners," said Palm Beach County Commissioner Melissa McKinlay. "Thanks to this $14 million loan guarantee, our County will continue to attract businesses, create more jobs, and create equal opportunity for all residents. It has been beneficial to all corners of Palm Beach County, especially our rural communities in the Glades."

The loan guarantee assistance was awarded through the Section 108 Loan Guarantee Program (Section 108), which provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. The County will use the added Section 108 Loan funds to replenish its current loan pool to continue its successful Loan Fund project.

To date, Palm Beach County has provided 50 Section 108 loans to for-profit businesses leading to the creation of over two thousand jobs. Sixty percent of loans have been disbursed in low and moderate-income communities, and 82 percent of loans have been disbursed to minority recipients. The average loan amount has been approximately $507,000 and over two thousand jobs have been created.

The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG award 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 spur private economic activity, providing the resources or the confidence that private firms and individuals may need to invest in distressed areas. Read more about HUD's Section 108 Loan Guarantee Program.

As the need for economic recovery and community development continues, HUD's Section 108 program serves as a critical source of federal financing that helps to move projects forward and build strong, sustainable, inclusive communities.