Menino: Loan program for developers is imminent

The city could soon issue the first loan commitments for large commercial projects in Boston from a new $40 million fund, the office of Mayor Thomas M. Menino said today.

Menino announced the program in December, and the mayor's office described the "Boston Invest in Growth Loan Fund" as a "$40 million HUD Section 108 funded loan pool designed to jump-start well-financed construction projects, create jobs, and strengthen Boston’s economy."

The city said it could receive final approval from US Department of Housing and Urban Development later this month.

A press release from the mayor's office suggest that such a program will be welcome at a time when the "financing of commercial real estate has become significantly more difficult, with banks and other lenders having tightened their underwriting standards."

"The new loan pool," the press release continued, "would allow a number of the most worthy projects fill their financing gap in order to start construction during 2009."

The release also noted that up to 10 percent of the loan pool will be set aside for smaller neighborhood based projects.
(By Chris Reidy, Globe staff)