Pubic-Sector Loans to Private-Sector Businesses: An Assessment of HUD-Supported Local Economic Development Lending Activities

摘要

This report assesses the performance of the third party loans under principal programs that the Office of Community Planning and Development (CPD) of the Department of Housing and Urban Development (HUD) directs toward economic development: the Community Development Block Grant (CDBG) Program; the Section 108 Program; and the Economic Development Initiative (EDI). The research describes the CDBG, Section 108, and EDI programs, how they work, and what types of economic development they fund; estimates the size and quality of the loan portfolio; and appraises the success of these programs in terms of job creation, business success, loan pay back, leveraging, and cost per job created. Additionally, the study examines the reasons why communities have used Section 108, their experiences using Section 108, the effect of EDI money on that use, and the results of Section 108 projects. The concluding chapter assesses the feasibility of developing a secondary market for the economic development loans originating under the CPD programs.