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CUOMO ANNOUNCES $5 MILLION IN ECONOMIC DEVELOPMENT LOANS TO WASHINGTON, D.C. FOR A COMMUNITY DEVELOPMENT BANKWASHINGTON - Housing Secretary Andrew Cuomo today announced $5 million in economic development assistance for Washington, DC that will help capitalize the Community First Bank of DC, a community-oriented financial institution dedicated to creating jobs.
The $5 million in loan guarantee assistance will be used in conjunction with $3.5 million in Economic Development Initiative funds awarded by HUD last December to three community empowerment banks around the nation. These banks make loans to help entrepreneurs create jobs by starting and expanding small businesses, as well as providing mortgages for homebuyers.
"The best way to bring a new prosperity to our cities and their people is to create jobs," Cuomo said. "The Clinton Administration's wise investment in job creation will help transform our cities, improve lives and strengthen our economy."
HUD's Economic Development Loan Guarantee Fund provides communities with a source of financing for job creation, housing rehabilitation, and construction of public facilities and large- scale development projects. The majority of jobs created by each project are available to people with low and moderate incomes.
The loan guarantees, also known as the Section 108 program, save communities money by reducing the interest rate they would have charged on loans from commercial lenders. The guarantees also make loans more readily available and often attract other sources of funding from local and state governments, non-profits and the private sector to complete financing for major job creation activities.
Content Archived: January 20, 2009