Senate passes bill extending linked-deposit loan program

House Bill 109, sponsored by Rep. Don Wells, R-Cabool, was approved 33-0 by the Missouri Senate April 27, allowing for the permanent extension of  the Missouri Linked Deposit loan program, which gives small businesses and farmers access to low-interest loans.

The bill, which was sought by State Treasurer Clint Zweifel, now awaits Gov. Jay Nixon’s signature, according to a news release from Zweifel’s office.

Through the program, eligible borrowers - farmers and for-profit, Missouri-based small businesses that have fewer than 100 employees and are current with their state taxes - can apply for standard small-business loans.

If they’re approved, the state reviews the applications and deposits the funds with the lenders at below-market interest rates so the bank can issue the loan to the borrower at a rate that’s equal to the reduction on the deposit, with the lending institutions bearing all credit risk.

“Our challenge is clear - invest in an economy that provides jobs for every Missourian looking for work,” Zweifel said in the release. “(This) vote is good news for workers, borrowers and lenders because it provides absolute certainty - certainty that we are committed to job creation and investments in family farms.”

Read more about the Missouri Linked Deposit Program - and a local business participating in it - in the May 2 print edition of Springfield Business Journal.[[In-content Ad]]