Projects must meet the eligibility requirements of HUD's Community Development Block Grant Program and be able to secure the loan with a Letter of Credit. Several other agencies provide loan programs geared to a variety of different business types. Small Business Financing Provided by Community Capital Development Community Capital Development provides loans and technical assistance to small businesses. This small business financing is specially designed for businesses that would otherwise have difficulty in obtaining loans from conventional banks. Rates are a little higher than a typical bank loan due to the higher risk nature of these loans.
Most loans have a maximum term of five years.
The IRB Program makes available tax-exempt bonds on behalf of private companies. The key advantage of this type of financing lies in its tax-exempt status . Interest payments to IRB bond buyers are not subject to U.S. income tax. As a result, bond buyers are willing to accept lower rates of interest on these bonds, thus reducing project financing costs for the participating companies. The tax exempt rates are roughly 2-3 points below typical taxable rates.