HUD Special Purpose Loan Program


To assist with the expansion of existing small businesses and encourage the formation of new small business enterprises located within the Martin Luther King, Jr. Boulevard and Montgomery Street corridors.


  • Land and building acquisition
  • Construction and/or renovation of facilities (facilities must be utilized by the business applying for the loan)
  • Acquisition of machinery and equipment
  • Purchase of inventory
  • Working capital
  • Leasehold improvements
  • Business purchase


  1. Loan Amounts (subject to availability)
    • Minimum Amount: None
    • Maximum Amount: $150,000
  2. Collateral Requirements
    • Pledge of available personal and/or business assets
    • Personal guaranty
    • Security interest on business assets
  3. Term (fully amortized)
    • Up to three (3) years for working capital and inventory
    • Up to seven (7) years for fixed asset purchases
    • Up to ten (10) years for real estate acquisition or facilities improvement
  4. Interest Rates
    • The interest rate is set at Prime rate, as stated in the Wall Street Journal, minus four (4%) percent. The interest rate will be no lower than four percent (4%) and no more than twelve percent (12%).
  5. Fees to Borrower
    • The borrower is responsible for all closing costs associated with the loan


  • Small business as defined by the U. S. Small Business Administration (SBA)
  • For-profit businesses
  • Independently owned and operated businesses
  • For every $35,000 of loan proceeds, a job must be created or retained for a low to moderate income individual (based on household income); and
  • Provide substantial public or area benefits
  • Businesses located only on Martin Luther King, Jr. Boulevard and Montgomery Street corridors.


  • Speculative real estate investment – this includes apartments and/or residential housing of any type
  • Non-profit organizations


All information is subject to change without notice.