HUD APPROVES $20 MILLION LOAN GUARANTEE TO SPUR ECONOMIC DEVELOPMENT IN PHILADELPHIA

PHILADELPHIA - The U.S. Department of Housing and Urban Development (HUD) announced today that it is approving a $20 million loan guarantee to the city of Philadelphia to create a revolving loan pool designed for business expansion, neighborhood commercial growth and community-based organization development.

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. This public investment is often needed to encourage private firms and individuals to invest in distressed areas.

"HUD's Loan Guarantee Program is a powerful public investment tool to drive economic development in underserved areas," said Jane C.W. Vincent, Regional Administrator of HUD's Mid-Atlantic region. "Since 1995, the program has fueled Philadelphia's revitalization efforts, providing jobs for residents who need them most."

The Philadelphia Industrial Development Corporation (PIDC) will administer the loan pool, financing up to 10 loans between $1 and $5 million. Through the loan pool, the PIDC will fund economic development projects to meet the city's goals:

• Create and retain permanent jobs, making available 515 new employment opportunities
• Stimulate private investment for the neighborhood expansion of retail goods and services
• Generate the production of new properties through the elimination of blight, providing tax income for borrowers

This loan guarantee will fund the 10th round of Philadelphia's city-wide loan pool, originally established in 1995. Over the years, the city has received more than $350 million in Section 108 loan guarantees, creating and retaining nearly 10,000 jobs.

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. The Department's Mid-Atlantic region includes Delaware, the District of Columbia, Maryland, Pennsylvania, Virginia and West Virginia. The regional office is in Philadelphia.

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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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