HUD Section 108 Loan Guarantee
HUD loan guarantees support CDBG-eligible economic development, public facilities and housing through eligible public borrowers. Fees and repayment terms depend on the commitment and current HUD rules.
Check an Address — Free Snapshot
Explore location-based incentives alongside HUD Section 108 Loan Guarantee. This program requires a separate review of its business or project requirements.
Published criteria — confirm with U.S. Department of Housing and Urban Development
- Project located in Chicago (CDBG entitlement city)
- Must meet a CDBG national objective
HUD Section 108 Loan Guarantee is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · Public-borrower loan guarantee; current fees and repayment terms require HUD confirmation
Current published terms as of 2026-10-09
- +Loan guarantees generally limited by the public borrower’s CDBG allocation
- +Repayment terms are determined under current HUD rules and the project commitment
- +HUD announced a conditional FY2027 fee of 1.05%, applicable October 28, 2026 if statutory fee authority applies; confirm the fee for the particular commitment
- 1Develop project concept with City of Chicago DPD
- 2DPD submits Section 108 loan application to HUD on behalf of the city
- 3HUD reviews national-objective compliance and credit underwriting
- 4Loan proceeds disbursed to the city, which on-lends to the project
Discuss the project with Chicago DPD before approaching HUD
- Project pro forma and CDBG national-objective documentation
- Environmental review (NEPA/24 CFR Part 58)
- City Council ordinance authorizing pledge of CDBG
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
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- (800) 998-9999
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Last verified 2026-10-09
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
Qualified affordable-housing projects in HUD-designated QCTs may use up to 130% of otherwise eligible basis for LIHTC calculations, subject to allocation and tax rules. HUD published 2027 designations on October 6, 2026; their application depends on allocation, bond and placed-in-service timing.