HUD is providing the following guidelines to assist Section 108 Recipients in underwriting loans that support business enterprises. Although compliance with these guidelines is not mandatory, HUD's acceptance of business loans as collateral for Section 108 guaranteed loans will be facilitated if they meet these guidelines. Furthermore, while this document is meant to provide general guidance for underwriting, it is not meant to include all criteria a Recipient may use when evaluating the risk of making a loan to a Business Borrower.

In addition, HUD has a companion document, HUD Section 108 Underwriting Guidelines for Income-Producing Projects including: residential, office, retail, industrial, and mixed-use real estate projects. This is a resource for Recipients to use when a business provides real estate as collateral for a loan and/or when acquisition and/or improvement of real estate is part of the package of business assistance in the proposed HUD 108 financing.