New Section 108 Q&A Document for Assisting Business Borrowers Experiencing Distress as a Result of the Coronavirus
The Section 108 office has developed a list of questions and answers that describe actions that can be taken by HUD and communities to assist business borrowers experiencing economic distress as a result of coronavirus.
Many communities used Section 108 funds to make loans to businesses undertaking economic development projects. Some of these businesses are experiencing reductions in revenue due to the economic impact of coronavirus and are now requesting relief, e.g., forbearance on their payment obligations under their loans. Since repayments of the business loans are the intended source for repayment of the Section 108 loans, the ability of a community to grant relief to a business borrower may depend on the relief HUD can provide the community on the Section 108 loan.