December 9, 2008 - Boston Mayor Menino, Boston MA

Menino unveils program to help developers

Boston Mayor Thomas M. Menino announced the creation of a new $40 million loan program designed to aid stalled development projects across the city.

Boston Mayor Thomas M. Menino announced the creation of a new $40 million loan program designed to aid stalled development projects across the city.

The program, to be called Boston Invests, will help provide federal loans to developers within the next four months, said Menino, who unveiled the program in a speech this morning to the Greater Boston Chamber of Commerce.

"While others are settling for the status quo, we will stimulate growth," Menino said. "We're going to put people to work, move projects forward, and generate returns on our investments."

In discussing the new program with reporters, Menino said he has not yet identified projects that could receive the money, but he mentioned that a stalled effort to redevelop the Filene's block in Downtown Crossing might be a likely candidate.

Original Story - Boston Globe

Update February 5, 2009

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.