Loan program from state treasurer’s office shows ‘extraordinary demand’

Missouri State Treasurer Vivek Malek was in Springfield recently to promote MOBUCK$, a linked deposit government program dating back to 1985.

MOBUCK$ supports low-interest loans for Missouri small businesses, agriculture, local governments and other efforts. After action by Missouri lawmakers last year, MOBUCK$ funding can also be put toward investments in areas such as job enhancement and alternative energy, according to the treasurer’s office.

The program has seen “extraordinary demand” in the most recent program year, which ended Sept. 30, 2024, according to the treasurer’s website. MOBUCK$ approved roughly $583.8 million in total loan amounts, comprising an 8% increase over 2023 numbers, which themselves showed 84% growth since 2022, according to a 2024 program year report by the treasurer’s office.

Demand for the program has increased generally over the last few years, with the treasurer’s office approving some $457 million in new deposits supporting low-interest loans since Malek began serving as treasurer.

The online application portal for MOBUCK$-backed loans experienced so much interest this year that it’s “closed until further notice.” Eligible companies seeking capital through MOBUCK$ are advised to “please routinely check” the treasurer website for potential reopening dates for online applications. Application volume “is significantly driven by participation from our lending partners,” a treasurer’s office spokesperson said today in an email to SBJ. 

“Treasurer Malek is committed to advancing the MOBUCK$ program with a strategic emphasis on timing and industry-specific needs, ensuring that application windows – such as those for the Missouri linked deposit program for agriculture – are aligned with critical periods like planting and harvest seasons,” said Jackson Bailey, chief of staff forthe treasurer’s office, in a written statement.

Last year, Missouri lawmakers responded to statewide interest in MOBUCK$ by voting to expand taxpayers’ investment in the program to a $1.2 billion cap from $800 million. Sponsored by Rep. Terry Thompson, R-Lexington, and Sen. Sandy Crawford, R-Buffalo, in the state Senate, MOBUCK$ legislation sailed through the Missouri General Assembly process with a House vote of 138-10 and a 33-0 vote in the state Senate, according to state lawmakers’ records posted online. Gov. Mike Parson signed the bill authorizing the additional $400 million investment in May 2024.

Malek was in Springfield Aug. 22 to present an award to OakStar Bank. Statewide, OakStar was the leading bank for MOBUCK$ deposits during the 2024 program year, processing 128 deposits supporting loans worth $124.5 million.

The event included a tour of Sho-Me Fabrication LLC’s new 20,000-square-foot facility at 1930 N. Alliance Ave. Recently, Sho-Me Fabrication leveraged an undisclosed amount of MOBUCK$ funding to develop the new facility, according to OakStar Bank. 

At the award event, Malek told OakStar officials, “You are proof that when local banks believe in their customers, great things happen,” according to excerpts of Malek’s comments provided to Springfield Business Journal by a state treasurer spokesperson. “It takes more than numbers on a loan document to make projects like this succeed. It takes faith in people, and understanding of the community, and a willingness to go the extra mile. That is what you’ve shown through your partnership with Sho-Me Fabrication and with the MOBUCK$ program.”

“We were honored that Treasurer Malek came to our bank to personally present the award,” said Micah Scott, OakStar senior executive vice president and chief lending officer, in an email to SBJ. “The treasurer has been a strong proponent of the program since he took office, and it’s been a great tool for OakStar to help our small business clients mitigate the impact of the increased interest rates over the past few years.”

Asked why OakStar ranks first among Missouri banks in facilitating the program, Scott said, “Every bank is unique, and some programs just fit one bank better than others. MOBUCK$ fits us well in many ways, and we’ve decided to fully utilize the program to help our clients. We are constantly evaluating our options, so our utilization of the program in the future may vary, but it’s provided great value for the bank and our clients thus far.”

A spokesperson for Malek’s office said in an email sent to SBJ today that the MOBUCK$ program dovetails with other recent moves to bolster Missouri’s economic prospects. MOBUCK$ and House Bill 594, the latter of which passed during this year’s lawmaking session and eliminates Missouri’s capital gains tax, “serve as pillars of a broader growth strategy championed by state leaders.”

“Together, these efforts aim to foster entrepreneurship, drive job creation and stimulate reinvestment in local communities,” Communication Director Tianna Brooks said. “The recent expansion of MOBUCK$ underscores its growing significance within Missouri’s development strategy, and when paired with pro-investment tax policies, positions the state to attract sustained business activity and long-term economic growth.”