U.S. Housing and Urban Development has approved a $39 million loan guarantee to the city of Indianapolis to establish a Community and Economic Development Loan Pool.
Under the program announced Monday, the city’s Department of Metropolitan Development will be able to originate loans to provide financing for economic development and housing rehabilitation initiatives to benefit people of low and moderate incomes.
The city estimates its Community and Economic Development loans will create the equivalent of 470 new full-time jobs. More than half the jobs created through the loan program will be made available to low- and moderate-income people, HUD said.
HUD’s Section 108 Loan Guarantee Assistance Program enables cities to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities.