An alliance of lending institutions that fall under the Industrial Loan Co. Charter have created a loan pool of $126,000 to fund Salt Lake Neighborhood Housing Service, which targets older and declining neighborhoods and provides revitalization through low-interest loans and beautification projects.

A signing party and exchange of funds and documents was held Wednesday at USAA Financial Services Association, 2060 E. 2100 South.Alliance participants are American Investment Financial, American Investment Bank, Governor Financial Bank, Dreyfuss Thrift and Commerce, Fidelity Trust Co., IDS Deposit Corp., GMAC Capital Corp., Merrill Lynch National Financial and USAA Financial Services Association.

Loans will be unsecured, they will require 5.5 percent in simple interest and will be amortized over 372 months. In the first year, the borrower will repay interest-only quarterly payments and in subsequent years there will be interest and principal payments.