News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The UCDD received the largest amount of money in the state for its revolving loan program to help local businesses.
Director of Economic Development Megan Choate said they received over $5 million dollars thanks to additional CARES Act money through the Economic Development Administration. Choate said the UCDD got nearly five times more money allocated than the next highest recipient.
“The strength of our revolving loan fund weighed into that decision, and we’ve been blessed with good managers over the program for many decades,” Choate said. “We’ve also been blessed to work with great business clients, so that’s resulted in a low default rate and really made our program stand out.”
Choate said the revolving loan fund functions by lending out money, and then payments revolve back into the fund. She said this program got a boost from extra federal dollars available because of the pandemic.
“We did receive an additional allocation, one of our funding partners the Economic Development Administration, received an allocation from the CARES Act,” Choate said. “To distribute additional money to existing revolving loan funds across the nation. So, we were able to take part in that and that has grown our portfolio and increased the program.”
Choate said this program is not intended to create profit and offers interest rates that are comparable to a bank. She said every type of business in the Upper Cumberland could be eligible.
“Commercial, service, industrial, retail, we’ve worked at all levels and in many different sectors,” Choate said. “Hospitality, manufacturing, retail health care, we are able to work with most any business in the area.”
Choate said they partner with banks, to support the entire funding puzzle for a business. The UCDD has had the revolving loan program in place since the 1980’s.
