HUD APPROVES ADDITIONAL $10 MILLION LOAN GUARANTEE TO IOWA

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced that it is approving an additional $10 million loan guarantee to the State of Iowa.

HUD's Section 108 Loan Guarantee Assistance Program enables states and 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 private firms and individuals may need to invest in distressed areas.

The State of Iowa's Economic Development Authority will use Section 108 guaranteed loan proceeds to capitalize a Community Revitalization and Economic Enhancement Loan Fund to make loans to non-entitlement units of local governments. The local governments will primarily be re-lending this financing to various non-profit entities, public/private partnerships and business entities to carry out a variety of affordable housing, mixed use, and economic development projects.

"The additional funds will help the State of Iowa transform communities, improve lives, and strengthen the economy," said Regional Administrator Jennifer Tidwell.

The State estimates that 380 full-time equivalent jobs will be created by the economic development projects that will be funded from approximately $7.6 million of the guaranteed loan funds.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov.

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