New UCDD Loan Program Approved For Child Care Capacity Projects

The UCDD Executive Committee approved a 12-month loan program for established child care facilities in the region.

Executive Director Mark Farley proposed the item during a Wednesday meeting. Farley said $1 million of funding will be available for the region.

“The only reason that were doing that is because in our market and in our region, child care is such a vital component that is not being met,” Farley said. “Right now, we want to try and increase the capacity.”

Farley said loans would range from $50,000 to $250,000. Farley said lower interest rates would be available for centers focusing on increasing capacity.

“We’re thinking somewhere between 0 and 2 percent interest depending on what the project is, how much capacity they would be bringing to our region,” Farley said.

Farley said the loans could also be used to maintain facilities. Farley said while the Upper Cumberland was allocated over $1 million in another state childcare grant program, there is a need for more.

‘We would market this to day cares throughout the region,” Farley said.

Farley said each loan application would be brought to the executive committee for approval. Farley said COVID money that was added to the development district’s revolving loan fund would be used for this program. Farley said some of those COVID loans have been paid off, so the money is there.