UCDD Offering Revolving Loans For Struggling Businesses

The Upper Cumberland Development District is offering revolving loans for businesses struggling from the pandemic.

The UCDD has offered this program before, but Executive Director Mark Farley said they’re receiving double the amount of federal funding, some $5 million.

“When we get this new money in, we’ll be making that at a very low interest rate,” Farley said. “About one to two percent depending on the client and the project. Obviously that allows some low interest capital to be borrowed hopefully to start businesses and to grow businesses to get through this COVID situation.”

Farley said the UCDD adjusted application terms to allow more businesses to apply. He said although the Small Business Administration helped a lot of businesses, the UCDD wanted to offer local help.

A revolving loan fund is designed to grow, Farley said.

“As we make loans to businesses, they’re going to be repaying that…a long with interest,” Farley said. “As time goes on, we let that interest build up so that we have more and more money every month to make loans out to new businesses. It’s somewhat similar to what a bank would do except we’re not making a profit off it.”

The extra funding comes through the Economic Development Administration.

Any business interested in applying for the revolving loan can contact the UCDD office at (931) 432-4111.