Section 108 Loan Guarantee Program

$24 million CDBG loan funds

In 2015, the Department of Housing and Urban Development (HUD) authorized St. Louis County to borrow up to $24 million under the Section 108 Loan Guarantee Program (Section 108).  This loan program provides communities in St. Louis County with a source of financing for economic development, housing rehabilitation, public facilities, and other physical development projects, including improvements to increase resilience against natural disasters.


St. Louis County now has the ability to make federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of revitalizing entire neighborhoods. Such public investment is often needed to inspire private economic activity, providing the initial resources or simply the confidence that private firms and individuals may need to invest in distressed areas.


Loans under St. Louis County’s Section 108 Program will range from approximately $500,000 to $10 million, depending on the scale of the project or program.  Under Section 108, project costs can be spread over time with flexible repayment terms, and borrowers can take advantage of lower interest rates than could be obtained from private financing sources.


Types of Eligible Projects

  • Transit-Oriented Development
  • Mixed-Use Commercial, Retail, and Multi-Family Rental Development
  • Business Development Loans
  • Infrastructure and Public Facilities


Additional Resources for Borrowers in the Promise Zone

$2.4 million Declared Disaster Recovery Funds


St. Louis County was awarded $2.4 million in Declared Disaster Recovery Funds to be used to assist communities impacted by the tornadoes and severe storms of May, 2013, which moved through the northern portion of St. Louis County.  The area of North County impacted by the severe weather generally aligns with the HUD designated St. Louis Promise Zone. 


The $2.4 million Declared Disaster Recovery Funds were awarded in conjunction with St. Louis County’s Section 108 Program.  In recognition of the intent to assist disaster affected areas, and to enhance the impact of St. Louis County’s Section 108 Loans, the $2.4 million Declared Disaster Recovery Funds will be used in conjunction with loans made through the County’s Section 108 Program and in the Promise Zone area of St. Louis County.  Funds will be used to make grants or loans to eligible entities.  Additionally, funds may be used to reduce interest rates for Section 108 borrowers.  As loan activities are approved under St. Louis County’s Section 108 Program, the St. Louis County Office of Community Development will have discretion to supplement loan proceeds with an award from the allocation of $2.4 million Declared Disaster Recovery Funds as it deems appropriate.  


Eligible Activities - Declared Disaster Recovery Fund

  • Acquisition
  • Disposition
  • Public facilities and improvements
  • Clearance and remediation activities
  • Public services
  • Interim assistance
  • Payment of non-Federal share
  • Urban renewal completion
  • Relocation
  • Loss of rental income
  • Privately owned utilities
  • Construction of housing
  • Housing services
  • Homeownership assistance
  • Rehabilitation
  • Code enforcement
  • Special economic development activities
  • Technical assistance
  • Assistance to higher education institutions

Eligible ActivitiesSection 108 Loan Guarantee Fund

  • CDBG eligible soft costs related to New Construction or Rehabilitation
  • Acquisition
  • Rehabilitation of Commercial/Retail/Housing
  • New Construction of Commercial/Retail
  • Site Preparation including demolition, clearance, environmental remediation
  • Relocation of tenants in accordance with the Uniform Relocation Act (URA)

In addition to compliance with a eligible activities listed on this page, activities funded under St. Louis County’s Section 108 Program or with $2.4 million Declared Disaster Recovery funds must meet a national objective of the CDBG program.

Contact Farris A. Watson at 314.615.4427 or email at [email protected].



  • Borrowers Application pdf
  • St. Louis County Application for 108 Assistance pdf
  • St Louis County 108 Project Pro Forma xls
Contact Information
Office of Community Development
41 S. Central, 5th Floor
Clayton, MO 63105
Phone: (314) 615-8232
Fax: (314) 615-8674
TTY: (314) 615-5889