|HUD No. KY14-004
August 25, 2014
HUD APPROVES $4 MILLION LOAN GUARANTEE TO COVINGTON, KENTUCKY
LOUISVILLE, KY - The U.S. Department of Housing and Urban Development (HUD) today announced that it is approving a $4 million loan guarantee to Covington, Kentucky to finance $3 million in small business and micro loans and to rehabilitate $1 million in public property.
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 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 Regional Administrator for the Southeast Ed Jennings, Jr. "These projects will benefit small business and developer access to capital that will provide the needed boost to bring commercial activity and create jobs, many of which will be held by low- and moderate-income persons, and represents a truly win-win situation for Covington."
Projects assisted with this guaranteed financing will be located primarily in Covington's Neighborhood Revitalization Strategy Area in the downtown area; however, the city may also fund projects in other low- and moderate-income areas of the city. The city will also look to work with for-profit and non-profit entities for economic development activities.
For more information on the Section 108 program, please visit our website.
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