Governor signs permanent extension to state loan program

Gov. Jay Nixon yesterday signed into law House Bill 109, which removes the expiration date for the state's low-interest loan program, called Missouri Linked Deposit.

The program was scheduled to expire on Dec. 31, 2015, according to a news release from state Treasurer Clint Zweifel's office, which manages the loan program.

"These low-interest loans have real impact, and their continued availability is critical to investments in jobs and agriculture," Zweifel said in the release. "Small-business owners and farmers have been awarded more than $680 million in loans that have direct impact on 11,000 jobs and farmers."

Southwest Missouri businesses have borrowed more than $60 million in Missouri Linked Deposit funds since January 2009, the year Zweifel's office expanded the program, allowing businesses with up to 99 employees to qualify compared to the previously allowed 24, according to Springfield Business Journal archives.

In April, Springfield-based Anderson Engineering Inc. was approved for a $38,000 loan.

Through the program, approved borrowers work with participating community banks to receive below-market interest rates. There is no minimum or maximum loan amount, according to the archives.

Legislation for the permanent extension passed the Missouri Senate 33-0 and the House 158-0 before moving to the governor's desk. Rep. Don Wells, R-District 147, sponsored HB 109.

"Gov. Nixon’s signature on this bill is good news for our economy and for businesses and farms looking to reduce debt, buy equipment, broaden distribution and develop new products," Zweifel said in the release. "This provides certainty to the capital markets and ensures access to low-interest loans for those leading our recovery throughout the state."[[In-content Ad]]