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UCDD Exec Committee Increases Cap For Micro-Loan Program

/ The Upper Cumberland's News Leader
UCDD Exec Committee Increases Cap For Micro-Loan Program

More micro-loan opportunities through UCDD will be available for those starting a small business.

The Executive Committee voted Thursday to increase the cap from $450,000 to $1 million. Lending and Economic Director Megan Choate said the loan committee felt it was time to up the portfolio.

“As the economy changes and as new businesses start, we see ebbs and flows in the demand of that,” Choate said. “So when there is a time that is hot and there is a much greater need, we would like to have some more flexibility.”

The $30,000 loans are meant for new businesses trying to get off the ground. Choate said the district has seen success so far with 21 loans distributed since the pilot program began.

“We currently have 19 open loans with a balance of just under $380,000,” Choate said. “Of those loans, obviously we expect some risk and default, but only two are in default or at risk of defaulting

“We fully expect to collect all of that money. It just wasn’t successful from that business realm,” Choate said. “We’ve really seen some unique businesses take off.”

Choate said the loan amount will remain the same under the cap change. Executive Director Mark Farley said the program that UCDD started a few years ago has started conversations of a statewide program.

“This is a concept that is catching on,” Farley said. “We were sort of ahead of the curve. In fact, Tyler Asher and I went and spoke to the Small Business Administration about starting one statewide. The whole concept is helping that person as they try to get their business off the ground.”


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