$1 Million Investment Into UCDD Micro-Lending From Outside Group

An outside investment group interested in putting $1 million into UCDD’s Micro-Lending Program.

UCDD Executive Director Mark Farley said the investment group had been working with Upper Cumberland banks through a federal program. Farley said that now the group is interested in helping UCDD spur business growth.

“One of the reasons why they approached us is to be able to deliver this product into the region,” Farley said. “We’ve been very successful over the last year and a half, helping a lot of businesses. Rather than them establish a footprint here in the region, they’re wanting just to contract with us to do that.”

Farley said small businesses in the Upper Cumberland have seen growth through the pandemic. He said that is in part thanks to their work through the Community Development Financial Institutions Fund.

“They get some funds through various banks and they turn around and put that into some projects that will spur growth and job creation,” Farley said. “Across the footprint of the area they’re dealing with.”

Farley said that at this time there’s $450,000 in the Micro-Lending Program. He said these loans can be high-risk but UCDD sees the value to continue reinvesting into the program with an additional $150,000.

“It’s a pool of loans that are going to be a little bit higher-risk, obviously with startup companies,” Farley said. “So the board they’re willing to take a gamble on some of these business owners.”

Farley said that one condition the outside group is asking for is for their loan cap to be raised to $50,000. The traditional maximum for the Micro-Lending Program is $30,000.