Section 108 Loan program

Funding community projects with below market rate loans

The Section 108 program secures loans with future allocations of Community Development Block Grant (CDBG) funds. These loans provide communities with source of financing for a variety of community and economic development projects. 

  • Funds may be passed through to not-for profit organizations and private businesses for eligible projects
  • Amount of available funds is dependent on previous awards and loan repayments
  • Below market rate loans
  • Minimum loan amount is $1,000,000, maximum loan amount is $10,000,000
  • Loan terms may not exceed 15 years and vary depending on the project activities
  • All loans require adequate security to ensure loan repayment
  • All federal CDBG requirements apply to Section 108 loans

Eligibility

  • Incorporated cities and counties in the state of Iowa, except those designated as U.S. Department of Housing and Urban Development entitlement areas
  • Economic development projects with job creation component
  • Adaptive conversion or reuse of commercial buildings for residential development
  • Rehabilitation or renovation of upper story residential units
  • Gut rehabilitation or demolition of vacant, dilapidated single family residential units

How to Apply

  • Contact the program manager to determine availability of funds
Program Contact(s)

Ed Basch
515.348.6208
ed.basch@iowaeda.com

 

 

 
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.725.3000
email: Email Us

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