UCDD Offering New Lower Rate Loans

UCDD now offering loans with lower interest rates thanks to a new partnership with the Tennessee Rural Development Fund.

Executive Director Mark Farley told the UCDD Executive Committee Wednesday this is their first time partnering with a community development financial institution to provide loans. Farley said this unique opportunity will allow them to give their end users better loan packages overall.

“This is where we’re really getting up and running,” Farley said. “We’re partnering with this CDFI that’s local, the Tennessee Rural Development Fund that’s located here in Cookeville, they’re going to be a great partner moving forward. They’re able to bring state money and their money at a much lower interest rate then even I can do and far lower than what a bank can provide.”

Loan Officer Mindy Tramel said the partnership also allows UCDD to take a first place lien on the more important collateral in any given loan. Tramel said they are always seeking out new partnerships and do not want to use this new offering to replace other financing options in the area.

“When you’re in first position should something go wrong, which we never expect, you have that first spot on any collateral,” Tramel said. “Therefore lowering your risk and allowing you to price it a little more competitively.”

Tramel said the partnership is possible thanks to the LendTN funding that the state allocated to various financial institutions across the state.

“They need to have a match in order to deploy those funds,” Tramel said. “They have several options, but they had approached us about being a possible match because of the ability to each put in half which lowers the risk to everybody involved.”

UCDD’s executive committee approved two loans with this rural development fund, one for a new tire shop in Smithville and another for a new childcare company in Baxter. The committee also approved a loan through a normal bank for a salon in Cookeville to purchase a new location in the city.

In other business, Farley honored former Livingston Mayor Curtis Hayes for his eighteen years in office and the service he gave to the Upper Cumberland community.