Fort Collins receives $5 million loan guarantee for jobs

FORT COLLINS – The U.S. Department of Housing and Urban Development has approved the city of Fort Collins to receive a $5 million Section 108 Loan Guarantee.

Section 108 allows local governments to leverage Community Development Block Grants to fund economic and community development projects.

The city submitted the loan application last December and it was approved after a six-month review, according to Mike Freeman, the city’s chief financial officer.

Freeman said the city will use the Section 108 loan to create an economic development loan pool that will provide low-interest loans to local businesses. The $5 million is expected to leverage small business retention and expansion efforts to create at least 150 jobs for Fort Collins residents.

At least 51 percent of the jobs must be available to low- and moderate-income residents. Eligible projects will be screened and approved by the city council.

“At a time when unemployment rates are relatively high and businesses are still wary of expansion, the city is taking a proactive role and providing essential financial assistance to help them stay in Fort Collins and create more jobs,´ said Freeman. “The Section 108 loan is another tool in the city’s economic development toolbox, allowing us to forge crucial public-private partnerships to keep Fort Collins great.”

Details on the Section 108 loan application and its requirements will be posted soon at fcgov.com/business, Freeman said.