Sunday, May 1, 2011

Senate passes permanent extension of Missouri Linked Deposit Program sought by State Treasurer Clint Zweifel

The Missouri Senate today passed House Bill 109, authorizing the permanent extension of the Missouri Linked Deposit Program. The bill was sought by State Treasurer Clint Zweifel (ZWY-ful) to guarantee farmers and small business owners continued access to low-cost investment capital. The bill heads to Governor Jay Nixon’s desk.

The legislation passed the Senate 33-0 and the House 158-0. Treasurer Zweifel has lent more than $570 million and impacted more than 9,000 jobs and farmers through the Missouri Linked Deposit Program. The low-interest loan program is fiscally responsible because the partner lending institution takes all credit risk, not the state.

“Our challenge is clear – invest in an economy that provides jobs for every Missourian looking for work. This permanent extension of low-cost investment capital guarantees we will continue to invest in Missouri’s strengths and its entrepreneurial spirit,” Treasurer Zweifel said. “Today’s unanimous and bipartisan 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.”

Representative Don Wells sponsored HB 109.

“The passage of this bill in the Senate is good news for Missouri. The Missouri Linked Deposit Program has proven to be an excellent economic tool,” said Rep. Wells, the bill sponsor. “Treasurer Zweifel’s efforts to increase usage have been extremely successful in my district, and extending this economic development tool ensures access for our small business owners and farmers.”

HB 109 removes the Missouri Linked Deposit Program’s expiration date set for Dec. 31, 2015. Loans, which are approved yearly for up to five years, are available with five-year fixed rates. The permanent extension provides certainty to lenders that the highly popular five-year fixed rates will continue uninterrupted.

In 2009, Treasurer Zweifel’s jobs and economic development package expanded eligibility for the Missouri Linked Deposit Program. The single largest expansion of the program allows businesses with up to 99 employees to qualify; previously a business could have no more than 24 employees.

About the Missouri Linked Deposit Program

Missouri-based small businesses with up to 99 employees and farmers are eligible to receive a loan from State Treasurer Clint Zweifel through the Missouri Linked Deposit Program based on lender underwriting standards. Additionally, local governments, housing developments and alternative-energy focused projects may qualify for the low-interest loans. About 112 lenders with 300 branches throughout Missouri use the Missouri Linked Deposit Program. Information on the program and a list of participating lenders in the state can be found at www.treasurer.mo.gov/LinkedDeposit. The Missouri Linked Deposit Program was established by law in 1986.

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