The city of Boston, Massachusetts announced yesterday that it would commit a $40 million loan program to help construction projects that were struggling because of recent credit struggles.
Boston mayor Thomas Menino said the so-called "Boston Invest in Growth Loan Fund" would be used to help companies that have equity and permanent financing already in place, according to the Boston Business Journal.
"The new loan pool would allow a number of the most worthy projects fill their financing gap in order to start construction during 2009," the mayor's office said.
Ten percent of the project would be set aside for small construction projects that are at least 5,000 square feet in size. In order to qualify for the loans, city officials said builders would need to create one full-time job for every $35,000 in loans.
According to the Boston Herald, a number of developers have already contacted the city about the loan project including three projects in the city's theater district.
"We want projects that are ready to put a shovel in the ground," Menino said, according to the Herald.
In December, then president-elect Barack Obama met with State governors and told them to be "shovel ready" for construction jobs in their states.