CUOMO ANNOUNCES $5 MILLION IN HUD ASSISTANCE TO FORT WORTH FOR COMMUNITY REVITALIZATION AND CREATION OF 125 JOBS

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced $5 million in loan guarantees to Fort Worth, TX to enable the city to make low-interest loans to help start and expand small businesses that are expected to create 125 jobs and help revitalize the North Main Street Mercado area.

In addition, Fort Worth will use a $1 million grant it received last year from HUD's Economic Development Initiative for the same revitalization project. Grant funds will be used to build sidewalks, purchase a vacant lot that will be converted into a plaza, and for related work.

The announcement was made at the conclusion of a meeting at HUD headquarters today between Fort Worth Mayor Kenneth Barr and Saul Ramirez, HUD's Assistant Secretary for Community Planning and Development and Acting Deputy Secretary. Ramirez is a former mayor of Laredo, TX.

"These loan guarantees will strengthen HUD's partnership with Fort Worth," Secretary Cuomo said. "This is an example of the type of wise investment by the Clinton Administration that is helping communities and their residents around the nation."

Mayor Barr said: "The Mercado Project is another opportunity to partner with HUD as we did last year with the Minyard's Store in southeast Fort Worth. It will create much needed jobs for people in the north side and continue our progress toward revitalizing Central City Fort Worth."

Most of the jobs - in restaurants, retail stores and offices - are expected to go to people with low- and moderate-incomes.

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 loan guarantees, also known as the Section 108 program, save communities money by reducing the interest rate they are 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.