HUD APPROVES $1.5 MILLION LOAN GUARANTEE TO PEORIA, ARIZONA

SAN FRANCISCO - The Department of Housing and Urban Development today announced that it is approving a $1.5 million Section 108 Loan Guarantee to the City of Peoria, Arizona so that MaxTech, a for-profit business, can expand manufacturing operations into vacant space. MaxTech expects to create approximately 150 new jobs due to the planned expansion.

HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions, to provide seed money, or to simply boost confidence that private firms and individuals may need to invest in distressed areas.

"HUD's Loan Guarantee Program can be a powerful public investment tool to drive economic development in underserved areas," said HUD Secretary Shaun Donovan. "The program will be a boost to the City's revitalization efforts and provide jobs for residents who need them most."

MaxTech specializes in manufacturing energy storage and power delivery components and equipment for automotive, heavy transport, and consumer electronics applications. MaxTech is expanding its manufacturing operations into a 120,000 square foot, vacant building within the City of Peoria. This manufacturer has entered into 10-year lease with another private sector company for the use of this vacant facility.

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