HUD APPROVES $1.5 MILLION LOAN GUARANTEE TO SPRINGFIELD

BOSTON - The U.S. Department of Housing and Urban Development today announced that it is approving a $1.5 million loan guarantee to the City of Springfield, Massachusetts to establish a low-interest loan fund for restaurants in downtown Springfield. The Downtown District Loan Fund will help establish new full-service restaurants and job opportunities in the heart of downtown Springfield's business district. The city aims to develop the district into a prime location for restaurants to service the additional commuter traffic expected through the restored Union Station; an increased number of residents living downtown; and the thousands of new visitors a new entertainment district will attract. Since a 2011 tornado devastated part of downtown Springfield, the City's recovery and resiliency efforts have included bolstering the economic vitality of the downtown area. The City received a $17 million award through HUD's 2015 National Disaster Resiliency Competition. The City will make loans ranging from $50,000 to $200,000 that will aid in creating permanent jobs, particularly low-and moderate-income jobs, to stimulate private investment, and help revitalize downtown.

"This loan guarantee is one of the most successful investment tools that HUD offers to local governments," said Jim Reed, HUD New England Regional Administrator. "We commend the city's leadership for their commitment to economic development and job creation."

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.

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