2003 Section 108 Project Summary - Washington

Economic Development

Economic Development Loan Pool
BORROWER: YAKIMA
STATE: WA
COMMITMENT AMOUNT: $4,000,000
Yakima received a $4,000,000 Section 108 loan to capitalize an Economic Development Loan Fund (EDLF). The $1,000,000 of companion HUD Economic Development Initiative (EDI) funds will be used to lower the interest cost to the borrowers using the EDLF. The City states that the EDLF will attract over $3,300,000 in private investment. The EDI funds will also be used as a loan loss reserve for individual projects. The City has patterned the EDLF after a successful Section 108-assisted program operating in Portland, Oregon. Eligible uses of the EDLF fall into two broad categories, real estate loans and business loans. The City's underwriting guidelines will assure that applications meet appropriate eligibility, national objective, and public benefit standards. The EDLF will finance projects located within the boundaries of the City's Renewal Community. The City has committed to a new job creation goal of 145.