The federal government is guaranteeing $12 million in business loans aimed at spurring development and creating at least 350 new jobs in Newark, an agency announced today.
The loan pool, which will be guaranteed by the U.S. Department of Housing and Urban Development, will be used to help assemble underused commercial sites for the development of light industrial and manufacturing facilities, according to a HUD news release. It also will finance the rehabilitation of older housing units into mixed-income, affordable units, among other neighborhood development projects.
The loans will be implemented and administered by Brick City Development Corp., Newark's nonprofit business growth agency, the news release said. In the meantime, HUD identified several neighborhoods as candidates for financing, including the Broad Street station area, Military Park, University Heights, the Passaic riverfront and the blocks around the Prudential Center.
HUD's Loan Guarantee Assistance Program allows local governments to borrow money at reduced interest rates to put toward economic development, job growth and improving public facilities. The news release said the funds could help the city leverage private funds in distressed areas.
Reporter Joshua Burd is @JoshBurdNJ on Twitter.