FR-6561-N-02 Solicitation of Comments—Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2026
Summary
The federal government is announcing a new fee that borrowers will need to pay when they use the Section 108 Loan Guarantee Program, which helps communities finance development projects. The fee covers the government's costs to back up these loans if borrowers can't repay them. HUD is asking the public for feedback on this fee before finalizing it.
Key Points
- 1A new fee will be charged to borrowers who use the Section 108 Loan Guarantee Program, a federal program that helps communities finance economic development and neighborhood improvement projects
- 2The fee is designed to cover the government's credit subsidy costs, meaning it pays for the risk the government takes by guaranteeing these loans
- 3This fee applies specifically to new loans issued in fiscal year 2026 (October 2025 through September 2026)
- 4Community development organizations, municipalities, and nonprofits that rely on this program may face higher costs when borrowing money for projects
- 5The public has until January 29, 2026 to submit comments about the proposed fee to HUD before the agency makes a final decision
Key Dates
January 21, 2026
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
The Digest Network
AI Comment Drafter
Describe your concern and we'll help you draft a substantive comment.
AI-generated draft. Always review and edit before submitting. Replace all [bracketed placeholders] with your specific details. Your comment should reflect your genuine views and experience.