UCDD providing financial assistance for Jackson Kayak expansion in Sparta

A new financial assistance package from the Upper Cumberland Development District is set to support Jackson Kayak’s expansion efforts in White County, a sign of the company’s continuing growth and investment in the area.

UCDD Business Lending Manager Mindy Tramel provided an update to the Executive Committee, on Wednesday, regarding Jackson Kayak’s recent loan requests. The company has applied for a $200,000 loan to help fund its expansion initiatives, which include the strategic acquisition of a pair of other kayak and paddleboard brands,  Corner Paddles and Eddyline Kayaks. Tramel explained that these acquisitions are part of Jackson Kayak’s broader plan to increase production capacity and market reach.

A significant piece of the expansion involves relocating Eddyline’s manufacturing operations back to the United States. Previously, Eddyline’s production was based in Mexico, but the company decided to bring this operation back to Sparta. This move is a positive step toward bolstering local manufacturing and creating new employment opportunities in the area. Jackson Kayak currently employs approximately 120 workers, and the company’s decision to move Eddyline’s production to White County is expected to generate around ten new jobs for the community.

Regarding the terms of the loan, Tramel noted that Jackson Kayak’s proposed financial arrangement includes a 7.5 percent interest rate over a 10-year repayment period. The company would make monthly installment payments of $2,734.

In addition to the UCDD loan, Jackson Kayak has also requested financial support from the White County Industrial Development Board. The company requested an additional $200,000 from the IDB, which would carry a more favorable interest rate of 4% over the same 10-year term. The White County Industrial Development Board reviewed and recommended approval of the loan application on June 9.

The company plans to contribute approximately $243,600 toward the project itself. This includes the nearly $98,000 that Jackson Kayak has already paid toward a required deposit for manufacturing equipment, or 40 percent of the total oven cost.