Section 108 Loan Guarantee Project
ADECA’s Section 108 Loan Guarantee Project provides federally backed loans to Alabama local governments for major economic development and community revitalization projects under the CDBG program.
Funder: Alabama Department of Economic and Community Affairs
Due Dates: July 22, 2026 (PY2026 CDBG grant application deadline)
Funding Amounts: Federally guaranteed loans for large-scale community/economic development; award size and terms determined by project and underwriting.
Summary: Provides local governments in Alabama with access to HUD Section 108 federally guaranteed loans for major community and economic development projects under the CDBG program.
Key Information: Applicants must contact ADECA directly for Section 108 application materials and guidance.
Description
The Section 108 Loan Guarantee Project, administered by the Alabama Department of Economic and Community Affairs (ADECA), offers a financing mechanism under the Community Development Block Grant (CDBG) program that enables eligible local governments to access federally guaranteed loans for substantial economic development and community revitalization efforts. This program utilizes the U.S. Department of Housing and Urban Development’s (HUD) Section 108 Loan Guarantee authority, allowing communities to leverage future CDBG allocations to support transformative projects that meet CDBG national objectives, such as benefiting low- and moderate-income persons, eliminating slums or blight, or addressing urgent community needs.
Applicants must coordinate closely with ADECA to obtain detailed guidance, ensure compliance with federal and state regulations, and access the necessary application materials. Section 108 projects typically include infrastructure improvements, economic development initiatives, and other eligible activities that require significant capital investment.
