SALINAS, Calif. -

The city of Salinas is poised to get a $9.4 million federal loan to help boost economic development and aid with job creation.

U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced he's approving the multimillion dollar loan guarantee to Salinas for a community and economic development loan fund.

That fund will provide assistance to third-party, for-profit entities for special economic development activities. City officials will also use the money to carry out site improvements for existing and planned industrial development, as well as working to preserve affordable housing.

City officials estimate the loan fund will help retain approximately 400 existing jobs and create approximately 3,100 jobs through future industrial development.

"This is an important step forward for the city of Salinas' economic development," said Ophelia Basgal, regional administrator for HUD. "The city, with its Economic and Community Development Department, will administer this loan pool and oversee public improvements and preservation of affordable housing that will save hundreds of local jobs."

HUD's Section 108 loan guarantee assistance program allows local governments to borrow money from private investors at reduced interest rates in order to promote economic development, stimulate job growth and improve public facilities.