10:37am

Tue August 23, 2011
Business

HUD Loan Will Benefit Fort Collins Businesses

The City of Fort Collins has been approved for a $5 million loan from the U.S. Department of Housing and Urban Development to help fund economic and community development projects.

Receiving a Section 108 Loan Guarantee means Fort Collins can now leverage the money it obtains from federal community block grants to provide low-interest loans to local businesses. The city’s Chief Financial Officer says it will create jobs.

“That’s really the intent of the program and it really gives us a new capability to help support existing companies stay here in Fort Collins and then also grow,” says Mike Freeman.

Freeman added that more than half of the anticipated 150 jobs created will be offered to low and moderate income individuals. Eligible projects will undergo a vigorous screening process and the City Council will have the final say in selecting which businesses receive assistance.

Freeman thinks all of the money will be loaned out within sixth months but says the program will continue to be replenished as the loans are repaid.