Section 108 Loan Guarantee Project
Forecasted
The Section 108 Loan Guarantee Project by ADECA provides federally backed loans to Alabama local governments for major community and economic development projects under CDBG guidelines.
Funder: Alabama Department of Economic and Community Affairs
Due Dates (Anticipated): July 2027 (full application) | April 2027 (pre-registration & workshop)
Funding Amounts: Federally guaranteed loans; award size and terms based on project needs and underwriting; no fixed minimum/maximum.
Summary: Provides federally guaranteed loans to Alabama local governments for major community and economic development projects under the CDBG program.
Key Information: This is a forecasted cycle; all dates are projected and subject to change.
Description
The Section 108 Loan Guarantee Project, administered by the Alabama Department of Economic and Community Affairs (ADECA), offers eligible local governments in Alabama access to federally guaranteed loans for large-scale economic development and community revitalization projects. Leveraging the U.S. Department of Housing and Urban Development’s Section 108 authority, this program allows communities to use future Community Development Block Grant (CDBG) allocations as loan security. Projects must advance CDBG national objectives, such as benefiting low- and moderate-income residents, eliminating slums or blight, or addressing urgent public needs. ADECA provides guidance to ensure compliance with federal and state requirements and to maximize the impact of these investments.
