Opinion -- Economic Data Showing Mixed Signals

By the Missouri Department of Economic Development

DED Stakeholders,

August’s economic data continues to provide us with mixed signals, however, the Fed may have given us an indicator as to which signals are more important.

Last month we covered the initial GDP release for the second quarter and the U.S. employment data for July. As a recap, GDP rebounded strongly (at an annualized 3.0% rate) after an import-induced decline in Q1. Revised GDP numbers released last week show that the second quarter’s growth was even better than originally announced (3.3%). However, U.S. employment told another story. Revised data shows that businesses have pulled back considerably on hiring with May, June, and July combining for just 106,000 jobs. Prior to May, the average growth per month was over 122,000.

July’s headline inflation number held steady at 2.7%, while core inflation (which removes food and energy prices due to their volatility) rose to 3.1%. This gets us back to those mixed signals. On one hand, there is concern (based largely on the employment data) that the economy might be slowing down. At the same time, inflation remains well above the Fed’s target rate of 2% and has risen in recent months. We often associate rising inflation with an economy that is running “too hot,” so seeing it rise as the economy is showing signs of slowing puts the Fed in a difficult spot. Should they hold interest rates at their elevated level to keep inflation in check (at the risk of slowing the economy further)? Or cut rates to boost the economy while risking higher inflation? Fed Chair Jerome Powell gave us a good indicator that the Fed was more concerned about the slowing economy and was leaning towards rate cuts.

Turning to Missouri, July’s employment numbers were good, adding 17,100, however, it might be best to wait until August’s data release (which would include any revisions to that 17,100 figure) before we celebrate. Much of the growth in July was in the local government sector, which includes public education. Understandably, these numbers can be difficult to assess during the summer as districts start hiring for the new school year.

Looking at a longer-term trend, Missouri is posting solid employment growth year-over-year with 49,300 jobs added for the year ending in July, which ranks 10th nationally.

September promises to be a telling month. All eyes will be on Friday’s U.S. employment release for August to see if the recent slowdown in hiring was a blip or the start of a new trend. On the 11th, we will have the latest data on inflation, which will undoubtedly factor in when the Federal Open Market Committee considers interest rate cuts when they meet in the middle of the month. Again, Chair Powell has signaled a cut.

All said, uncertainty continues to cloud the economy. However, it seems at least a bit clearer now that slowing growth is the primary concern.

 

Sincerely,

Jeff Pinkerton

Director of Economic Research

 

Americold opens New Cold Storage Facility in Kansas City

The Department of Economic Development (DED), alongside state and local leaders, today celebrated the grand opening of a storage facility in South Kansas City developed by Americold Realty Trust in partnership with Canadian Pacific Kansas City (CPKC). The project marks a major milestone in Missouri’s logistics sector and highlights the state’s strategic role in supporting cross-border commerce and supply chain innovation.

“Americold’s new facility is an exciting development for the Kansas City area and its thriving logistics sector,” said Governor Mike Kehoe. “Missouri’s affordability, strategic location, and access to infrastructure continue to encourage investment and job creation. We’re proud to see an industry leader like Americold choose our state while further strengthening the local economy.”

The 335,000-square-foot facility, developed in collaboration with CPKC, is expected to create nearly 190 new jobs and will serve as a key hub for CPKC’s Mexico Midwest Express (MMX) service, North America’s only single-line rail service for refrigerated shippers between the U.S. Midwest and Mexico.

“This is more than infrastructure – it’s a fully integrated solution that connects food producers to consumers faster and more efficiently,” said George Chappelle, CEO of Americold. “By combining our cold storage capabilities and food flow expertise with CPKC’s rail network through Kansas City, we’re creating a new North American cold chain that delivers real value to our customers. Simply put, we’ve unlocked a better way to move food.”

Americold’s plans to establish the facility were first announced in February 2024. A groundbreaking followed in April 2024.

“Americold’s grand opening represents an exciting step forward for our transportation sector,” said Michelle Hataway, Director of the Department of Economic Development. “We’re excited to see how this company’s investment will create new opportunities across the state.”

Americold’s new facility received support from the Missouri Works program, a tool that helps companies expand and retain workers by providing access to capital through withholdings or tax credits for job creation. The company may receive assistance from Missouri One Start, a division of the Department of Economic Development. Missouri One Start assists eligible businesses with their recruitment and training needs.

What others are saying

“This grand opening marks the realization of a shared vision,” said Keith Creel, President and CEO of CPKC. (Editor —  Not the same person as the former Royals pitcher.) “This facility is the first of many across our unrivaled North American network. By combining Americold with our secure, single-line cross-border service, we have created a new refrigerated supply chain for our customers shipping food and other temperature-controlled products across Canada, the United States and Mexico.”

“Kansas City proudly welcomes Americold to our thriving business landscape,” said Kansas City Mayor Quinton Lucas. “With direct rail connectivity through CPKC and a talented local workforce, this new facility highlights how strategic partnerships can reshape industries and accelerate innovation. We’re excited to be at the center of that transformation.”

“Americold’s investment in Kansas City not only brings new jobs - it brings opportunity,” said Tracey Lewis, President & CEO of the Economic Development Corporation of Kansas City, Missouri. “This project strengthens our logistics infrastructure and creates pathways for local talent to thrive in a fast-growing sector. It’s the kind of momentum we love to see for our city and our people.”

“It is always exciting when a company opens its doors in Missouri,” said Subash Alias, CEO of Missouri Partnership. “Americold is joining nearly 20,000 distribution and logistics companies in the state who are benefitting from Missouri’s central location, solid infrastructure, and low business costs.”

 

Letter -- Economy Moving Forward Cautiously During Uncertainty

DED Stakeholders,

The economy moves forward cautiously as it seeks some clarity.

Resilience has been the buzzword for the economy so far in 2025. If you were limited to just looking at the data and not the news, you might describe the current economy as performing at just about normal. When you factor in the news of the past few months, you might give the recent economic performance a bit more credit.

Let’s look at the key numbers that were released in July. We’ll start with GDP.

The U.S. economy posted a very strong 3% annualized growth rate in the second quarter. This was a rebound from the first quarter’s 0.5% contraction. This down and up pattern is mostly due to businesses importing more goods than usual in the first quarter to get ahead of tariffs (you can read more about this week’s GDP release below).

Looking past international trade, we see a couple of telling signs in the data. First, the U.S. consumer is still active as personal consumption grew at a 1.4% rate in Q2. However, investment from businesses (which grew at a 0.1% rate) was mostly flat. Business investments are typically large and require some sense of confidence in the direction of the economy and preferably, lower interest rates. These two items are in short supply right now as new international trade deals are being worked out and the Fed continues its wait and see approach.

Part of the Fed’s reasoning for not cutting rates is inflation. Lowering rates would boost the economy but it would also add inflationary pressure. The latest inflation figure showed a 2.7% increase in overall prices for the year ending in June. This is up from a 2.4% reading in May. This could be the early signs of tariff-driven inflation many economists had been worried about.

Elsewhere, today’s U.S. employment data release shows that businesses may be starting to pull back on hiring. In July, businesses added just 73,000 new jobs. More importantly, the employment data for May and June was revised significantly downward by a combined 258,000 jobs. Missouri’s employment data had shown good overall growth through June, adding nearly 15,000 new jobs, but this data will likely also be revised when the July data comes out.

All told, the economy seems to be moving ahead at a pace that's as fast as the current level of uncertainty will allow.

Jeff Pinkerton
Director of Economic Research
Missouri Department of Economic Development

Schutz to Expand in St. Joseph, Creating 20 Jobs

Schütz Container Systems, an industrial container and packaging manufacturer, announced today that it will expand in St. Joseph, investing $31 million and creating 20 new jobs. The company’s expansion includes adding a new manufacturing line for industrial packaging.

“Missouri is proud to welcome Schütz’s new facility to St. Joseph,” said Governor Mike Kehoe. “Their investment reinforces the strength of our state’s manufacturing sector, our highly skilled workforce, and our commitment to supporting businesses that choose to grow here. This expansion will bring quality jobs and continued economic momentum to northwest Missouri, and we look forward to a strong partnership for years to come.”

Schütz’s St. Joseph location will be the first among its 14 locations in North America to manufacture an additional product line of industrial packaging. A new building will be constructed on-site specifically for this purpose, using the latest generation of fully electric equipment to maximize efficiency, quality, and cleanliness in production.

“St. Joseph has proven to be the ideal place for us to grow,” said Frederik Wenzel, President and CEO of Schütz Container Systems. “With this expansion, we’re increasing our container manufacturing capacity and creating new jobs to meet rising demand. The skilled workforce and strong community support make St. Joseph the right place to invest in our future.”

Schütz’s packing systems are used worldwide to transport and store products safely. From simple chemicals and hazardous goods to highly sensitive products such as foods, Schütz supplies its customers with sustainable packaging solutions.

“Schütz’s expansion in St. Joseph is a great example of what can be accomplished through strong partnerships,” said Michelle Hataway, Director of the Department of Economic Development. “We’re proud to work alongside our outstanding local partners to enhance ongoing investment and create quality jobs. Together, we’re supporting business growth that helps Missouri communities thrive.”

Schütz was among the companies visited during the Trade Mission to Germany and the Netherlands in July 2022.

For this expansion, Schütz will benefit from the Missouri Works program, a tool that helps companies expand and retain workers by providing access to capital through withholdings or tax credits for job creation.

What others are saying

“We’re excited to see Schütz expanding its manufacturing operations here in St. Joseph,” said Natalie Hawn, President and CEO of the St. Joseph Chamber of Commerce and Economic Development Partnership. “This growth not only strengthens our local economy, but also reinforces our region’s reputation as a hub for advanced manufacturing. We’re proud to support companies that continue to invest in innovation and long-term success in our community.”

“A $31 million investment is a major milestone for Schütz in Buchanan County,” said Scott Nelson, Buchanan County Presiding Commissioner. “Schütz’s decision to grow here speaks volumes about the strength of our community and the pro-business environment we’ve worked hard to create. We’re proud to support this expansion and look forward to the lasting economic impact it will bring to our residents.”

“We are thrilled that Schütz, one of St. Joseph’s newer companies, continues to grow and create new opportunities here,” said St. Joseph Mayor John Josendale. “Its expansion is a strong sign of confidence in our workforce, our infrastructure, and the future of St. Joseph. We’re excited to continue partnering with businesses that choose to build and thrive right here in our community.”

About Schütz Container Systems

Schütz Container Systems offers the largest production and service network in North America for Immediate Bulk Containers (IBC) and is a division of Schütz GmbH & Co. KGaA, headquartered in Selters, Germany. As the world market leader in IBC, Schütz sets the benchmark in its markets with emphasis on quality, innovation, and supply security. The company provides its customers a fully circular product offering. In line with its sustainability philosophy, the Schütz Ticket Service operates within a closed-loop system, ensuring the swift collection and reconditioning of emptied industrial packaging in all major industrial nations worldwide.

To learn more about Schütz Container Systems, visit schüetz.net/USA.

About the Missouri Department of Economic Development

The Missouri Department of Economic Development (DED) works to create an environment that encourages economic growth by supporting Missouri’s businesses and diverse industries, strengthening our communities, developing a talented and skilled workforce, and maintaining a high quality of life. As one team built around the customer and driven by data, DED aspires to be the best economic development department in the Midwest. Through its various initiatives, DED is helping create opportunities for Missourians to prosper.

 

Missouri February 2025 Jobs Report

Missouri nonfarm payroll employment increased by 12,500 jobs in February 2025, and the seasonally adjusted unemployment rate remained at 3.7 percent. Private industry employment increased by 12,200 jobs and government employment increased by 300 jobs. Over the year, there was an increase of 10,300 jobs from February 2024 to February 2025, and the unemployment rate increased by two-tenths of a percentage point, from 3.5 percent in February 2024 to 3.7 percent in February 2025.

EMPLOYMENT

Missouri's nonfarm payroll employment was 2,993,900 in February 2025, up by 12,500 from the revised January 2025 figure. The January 2025 total was revised downward by 1,400 jobs from the preliminary estimate.

Goods-producing industries increased by 9,700 jobs over the month, with manufacturing gaining 9,300 jobs and mining, logging, and construction gaining 400 jobs. The increase in manufacturing is likely due to employees returning to work after temporary shutdowns. Private service-providing industries increased by 2,500 jobs between January 2025 and February 2025. Employment in private service-providing industries increased in professional and business services (3,300 jobs), private education and health services (3,000 jobs), and information (800 jobs). Employment decreased in leisure and hospitality (-2,400 jobs); trade, transportation, and utilities (-1,900 jobs); and financial activities (-300 jobs). Total government employment increased by 300 jobs over the month, with an increase in local government (700 jobs) and a decrease in federal government (-400 jobs).

Over the year, total payroll employment increased by 10,300 jobs from February 2024 to February 2025. Employment gains were in private education and health services (19,300 jobs), financial activities (400 jobs), and other services (400 jobs). Employment decreased in leisure and hospitality (-9,900 jobs); trade, transportation, and utilities (-3,100 jobs); mining, logging, and construction (-2,000 jobs); information (-1,800 jobs); professional and business services (-1,200 jobs); and manufacturing (-300 jobs). Government employment increased by 8,500 jobs over the year, with increases in state (6,400 jobs) and local (2,400 jobs) and a decrease in federal government (-300 jobs).

UNEMPLOYMENT

Missouri's smoothed seasonally adjusted unemployment rate remained at 3.7 percent in February 2025 from the revised January 2025 rate. The February 2025 rate was two-tenths of a percentage point higher than the February 2024 rate. The estimated number of unemployed Missourians was 117,687 in February 2025, up by 2,339 from the revised January total of 115,348.

The state's not-seasonally-adjusted unemployment rate also remained at 4.4 percent in February 2025. A year ago, the not-seasonally-adjusted rate was 4.1 percent. The corresponding not-seasonally-adjusted national rate for February 2025 was 4.5 percent.

Missouri's labor force participation rate was 63.3 percent in February 2025, nine-tenths of a percentage point higher than the national rate of 62.4 percent. Missouri's employment-population ratio was 60.9 percent in February 2025, one percentage point higher than the national rate of 59.9 percent. Missouri's unemployment rate was 3.7 percent in February 2025, four-tenths of a percentage point lower than the national rate of 4.1 percent. Missouri's unemployment rate has been at or below the national rate for more than nine years.

Missouri Digital Asset Map Being Formed

The Digital Asset Map is a project of the University of Missouri System Broadband Initiative in partnership with the Missouri Department of Economic Development and the Missouri Broadband Resource Rail.

The project aims to provide a comprehensive statewide inventory of public computers and Wi-Fi access locations, as well as resources such as digital literacy programs, computer classes, one-on-one technical assistance centers, and adult/workforce education programs. Entities offering public internet resources are encouraged to help build the Digital Asset Map by entering basic information that populates a searchable map to help users find nearby digital resources. As more assets are added to the map, MU Extension will help promote the tool to users across the state. To contribute to the Digital Asset Map, go to mobroadband.org/digital-asset-map. Next, click on the Add/Edit Digital Asset button and fill out the brief form. The form asks "community anchor institutions" to report available internet speeds. These institutions, such as schools and libraries, help people who would otherwise struggle to get online. The form will help identify locations that may be eligible for federal funds that do not currently have upload and download speeds of at least 1 Gbps. 

For questions, contact help@cares.missouri.edu.

Parnell Receives $667,788 Grant for Water Improvements

On June 1st, the Missouri Department of Economic Development announced that the City of Parnell had received a $667,788 CDBG Grant to make repairs to the water tower and distribution system. 

The money is part of a $41.2 million award through the state’s COVID relief program to help them prevent, prepare for, and respond to the lasting effects of COVID-19. 41 Missouri communities received funds.

Mission Possible Awarded Tax Credits for New Building

On Wednesday, the Missouri Department of Economic Development announced that it would award over $6.7 million in Neighborhood Assistance Program (NAP) tax credits to help non-profit organizations across the state with community development projects.

Mission Possible of Worth County was awarded tax credits under the program. They are planning to build a new building on the northwest corner of the Grant City Square. Previous plans included only a one level building. However, the current version includes a two level building for the Food Pantry, Thrift Store, and space for Community Services. It will be 5,252 square feet.

 Community Services is currently operating out of the building on the southwest corner of the Square across from Bears Lodge #26. They have been in several locations.

Mission Possible has currently outgrown their current facility on the east side of the Grant City Square. The Food Pantry is in the back of the building.

Northwest Missouri Enterprise Facilitation, which helps businesses in the area start or expand free of charge, was also awarded tax credits under the program. They serve several counties in the area, including Nodaway and Worth.

“Workforce development is a top priority of our Governor,” said Missouri Department of Economic Development Deputy Director Luke Holtschneider. “This program supports that initiative via strengthening Missouri’s communities by helping non-profit organizations raise private-sector funds. This is done by providing state tax credits to businesses that make contributions to approved community improvement projects.”

Donors can contribute cash, materials, supplies or equipment; technical assistance and professional services; labor; real estate; or stocks and bonds. Credits can equal up to 50 percent of the total amount contributed or up to 70 percent for projects located in the most rural areas.

Eligible donors include businesses, individuals who operate a sole proprietorship, operate a farm, have rental property or have royalty, shareholders in an S-corporation, partners in a Partnership, or members of a Limited Liability Corporation.

Applications are now being accepted for the second round of NAP submissions, which must be postmarked no later than September 4 to be considered. Organizations can apply for one, two, or three year projects. Applications for the first round of NAP submissions were submitted in March and April 2019.

Six Local Companies Receive State Workforce Development Grants

The Department of Economic Development’s Division of Workforce Development announced today the award of $5.1 million to 186 companies across Missouri to help train workers for new and existing positions.

Out of those companies, four are from Maryville and one from Hopkins. The companies are Federal Mogul (Maryville), Houston Poly Tank (Hopkins), Kawasaki (Maryville), Laclede (Maryville), and Maryville Tire Partners (Maryville). In addition, Midwest Data Center of Rock Port, which runs Grant City’s Internet service, was a recipient.

“Not only will this funding help Missouri workers gain new skills, it delivers value to Missouri businesses in an area of critical need—the availability of a quality workforce,” Governor Mike Parson said. “By helping businesses train new and existing workers, we’re helping them stay competitive and remain here in Missouri.”

The funding comes from the state’s Customized Training program, which helps small, medium and large businesses to grow by providing training to new and existing workers.

Through the latest round of funding, the program will train a total of 17,090 workers, 1,202 in newly created jobs and 15,888 in existing positions.

“This program has helped us remain competitive in our industry,” Tim Tuohy, Machine Center, Inc. said. “Manufacturing is a very competitive industry, and the global market makes it increasingly more difficult to remain so. Additional training has helped us to be more cost-effective and quality conscious. That gives us an advantage over the competition.”

Machine Center is a family-owned full service machine shop that’s operated for nearly 55 years in the St. Louis area.

Missouri’s customized training program allows companies the flexibility to choose their training provider, but the program is administered by Missouri’s community and technical colleges.

"The Customized Training Program is an invaluable asset for Missouri’s community and technical colleges, primarily because of the strong relationships they hold with their community employers," Brian Millner, President and CEO of the Missouri Community College Association said. "Together these partnerships result in timely, flexible, and cost-effective job training resources as they address Missouri businesses’ varying training needs. The program also ensures that Missouri’s workforce receives state of the art skills training required to retain their jobs and be competitive in the labor market."

“Our employees can participate in training classes that would not be possible without the funding we receive from Missouri Customized Training,” Matthew Kays with Kays Engineering, Inc. in Marshall said. “This not only improves our productivity and profitability, but it also makes our employees more educated, more productive, and more valuable. A more skilled and productive workforce is key to attracting manufacturers from all over the country and the world.”

Department of Economic Development to Visit Grant City March 28th

The Missouri Department of Economic Development Director Mike Downing has set dates to take a team of economic development experts and visit Grant City. The date will be March 28th. They will visit Albany on the previous day, March 27th.

Six communities total were chosen during the annual Missouri Community Betterment Program conference held on October 20th and 21st, where Downing issued a competition to the community representatives in attendance. The first five attendees to email Downing that night on behalf of their city would receive a visit from the team to discuss their community's needs and help find solutions to local economic development issues. Due to a tie, six communities were offered visits.

Since the conference, DED and MCB have put together teams of specialists who have begun initial planning and research for the six selected communities. The teams hope to develop community development strategies to encourage business growth and job creation.

MCB is designed to help Missouri communities enhance their quality of life through community development, planning, and implementation. The program offers technical assistance to its participating communities. The competition provides a unique opportunity for communities to get exclusive hands-on advice from a team that is specially created for that community's needs.

Proposed Constitutional Amendment Targets DNR

A proposed Constitutional amendment in the Missouri House, HJR 33, would keep the state soil & parks tax, but the Missouri DNR would no longer administer the funds. The bill is being sponsored by State Rep. Robert Ross. If approved in the legislature, the measure would go before the voters in November 2014 or a special election called for that purpose. Instead, the soil & water portion of the tax would be administered by the Missouri Department of Agriculture. Funds for the Missouri Park System would be administered by the Missouri Department of Economic Development. It would not be a new tax; it would simply change the way that the current soil & parks tax is administered.

Over the past four years, the Missouri DNR has come under fire for critics for what they say is mismanagement. In May 2009, the Columbia Daily Tribune reported that the Missouri DNR let a beach by the Lake of the Ozarks remain open for two weeks after it was discovered that there were excessive levels of e coli bacteria present:

 State Park Beach No. 1 was allowed to remain open over a two-week period, including the Memorial Day holiday weekend, despite the discovery of samples showing dangerous levels of E. coli bacteria on May 18 and May 27. The beach was not closed until June 5, based on results collected June 1.

But, as the Tribune article reported, Mark Templeton, the director of the DNR at the time, was not suspended for that until September. The article quoted Senator Brad Lager:

Sen. Brad Lager, R-Savannah and chairman of the Senate committee investigating what happened, said Templeton and the DNR general counsel had tried to block the inquiry. Lager said his attempts to get Nixon’s attention about that issue had been unsuccessful.

“The one fact that we can all agree on is that the public’s trust has been violated and the public’s safety has been put at risk,” Lager said. “I am grateful that the governor has finally decided to join the committee’s efforts in getting to the truth surrounding this willful disregard for public safety, which placed countless Missourians at risk.”

The DNR's handling of a situation at the Bridgeton (MO) landfill also drew heat. The October 30, 2012 St. Louis Post Dispatch reported on "rising underground temperatures" and odor that generated complaints from residents that lived near the inactive Bridgeton Landfill. Temperatures reached as high as 190 degrees and had been ongoing since January 2011. On February 15th, the Post-Dispatch reported that the DNR found that it was not a health threat, a conclusion not bought by people. For instance, a letter to the editor in the February 20th Post-Dispatch stated:

Isn't it strange that the agency cannot monitor the leaking coal ash ponds in Labadie because there is no law, but can voluntarily monitor for odors? If only the coal ash ponds produced an odor. Then DNR could monitor the situation "for the public good." But just doing so because it is the right thing to do is out of the question. Pitiful selective posturing.

Posters in the Post-Dispatch's comment section were no more receptive to DNR's findings, citing the fact that one sample at the site tested positive for excessive levels of Benzene, a chemical known to cause cancer from long-term exposure.

On February 14 of this year, the Riverfront Times reported that human feces have been found in the drinking water at some Missouri state parks. The environmental group Public Employees for Environmental Responsibility has asked for a federal review of drinking water at Missouri state parks, citing what they say is a failure to perform federally mandated testing as well as repeated problems with contamination. The complaint alleges that the DNR discovered a dozen such instances of contamination but failed to take any action.

The PEER alleges that the DNR retaliated against an employee who spoke out against the violations:

The PEER complaint was filed jointly with Patricia Ritchie, who for 19 years was the DNR public notice coordinator for safe drinking water compliance until she was separated from state service late last year. In 2002, Ms. Ritchie initially reported concerns of drinking water safety at Missouri state parks to the State Auditor. That office launched an investigation in 2003 and issued the report in 2004 confirming Ms. Ritchie's concerns. She has challenged her dismissal under the state whistleblower protection law. Her whistleblower case comes before the Administrative Hearing Commission later this month.

October jobs report shows Missouri unemployment rate lower than national average

Missouri added 13,000 new jobs in October, but the state's unemployment rate remained unchanged at 6.9 percent.

The Missouri Department of Economic Development released the job numbers for the month of October on Nov. 13. The department's spokesman, John Fougere, said the latest numbers are part of a positive trend in job growth.

"The state has now added approximately 47,000 new jobs in 2011 and 2012," Fougere said.

Missouri's unemployment rate has been below the national rate for 38 consecutive months.

Fougere also said the Missouri labor force grew by about 10,000 people in October.  

Columbia company that provides mortgage loans to veterans to expand significantly and create 300 new jobs, Gov. Nixon announces

Gov. Jay Nixon announced today that VA Mortgage Center.com, a company that specializes in providing home financing to military veterans, will significantly expand its operations in Columbia, creating 300 new jobs over the next five years while further investing into the local economy.
The Governor made the announcement today at VA Mortgage Center.com's main facility in Columbia, where it currently houses about 400 of its 500 employees. The company's planned expansion is aimed at increasing its offerings; hiring more employees; and consolidating its three Columbia facilities into a single headquarters in Columbia.
"This investment in job creation is a significant step forward for Boone County and all of central Missouri," Gov. Nixon said. "VA Mortgage Center.com has been wildly successful since its founding nine years ago, helping to ensure that our nation's military veterans who have sacrificed so much for our freedom and security to affordable home loans. This company's plans to create 300 new jobs while investing significantly into the local economy are great news for our state, and are just the latest sign that our economy is clearly headed in the right direction."
Founded in 2002, VA Mortgage Center.com offers affordable home loans to veterans and active duty service members and military families across the United States. Since its founding, VA Mortgage Center.com has helped more than 500,000 military families, making available more than $1 billion in home financing in the last year alone. Since May 2008, VA Mortgage Center.com has grown from 136 employees to 505 currently, an increase of 268 percent in just three years.
To help VA Mortgage Center.com move ahead with its plans, the state of Missouri authorized an economic incentive package worth $6.1 million to the company, which can be redeemed by the company over the next five years provided it meets the requirements of each incentive program.
Two weeks ago, the Missouri Department of Economic Development announced that the state's unemployment rate for the month of April dropped to its lowest figure in two years, down to 8.9 percent. The state added nearly 27,000 new jobs in the months of March and April combined. Missouri's international exports are also up 18 percent thus far in 2011, after increasing by an impressive 35 percent during 2010.

Gov. Nixon Visits St. Joseph to Discuss Small Business Loans

Gov. Jay Nixon visited St. Joseph today, hosting a roundtable discussion with local entrepreneurs to discuss his administration’s efforts to help small businesses grow and create jobs. Among the resources for small businesses addressed by the Governor during the discussion were the State Small Business Credit Initiative (SSBCI) and the Missouri Small Business Loan Program.

On March 22, U.S. Treasury Secretary Timothy Geithner and Gov. Nixon jointly announced the approval of Missouri’s application for $27 million in federal funding through the SSBCI. Gov. Nixon’s administration is investing these funds to help create new jobs to spur more than $269 million in additional small business lending in the state. The Missouri Department of Economic Development and Missouri Technology Corporation are administering the program.

“The health and prosperity of Missouri’s small businesses are the catalyst that drives job creation and a growing economy in our state,” Gov. Nixon said. “Along Main Streets in every community across Missouri, these new resources are helping entrepreneurs like the hardworking folks I met today grow their businesses and turn their dreams into bricks and mortar.

“Small businesses are the foundation of our state economy, and are simply critical to creating jobs and putting Missourians to work,” the Governor said. “We are investing these tools strategically in businesses that will help move our economy forward. I encourage Missouri small business owners to visit Mo.Gov and apply today.”

Through the SSBCI, Gov. Nixon’s administration will invest $26.9 million in SSBCI funds in small businesses across the state. Under federal guidelines, Missouri expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $26.9 million investment is expected to support more than $269 million in new private lending.

Gov. Nixon’s administration is dedicating $16.9 million to establish the high-tech Missouri IDEA Seed and Venture Capital Funds (IDEA Funds). IDEA stands for Innovation, Development and Entrepreneurial Advancement. The Missouri IDEA funds promote the formation and growth of businesses that engage in the transfer of science and technology into job creation. The funds provide financing to eligible businesses through four components that correspond to the four stages of venture growth: 1) pre-seed capital stage financing; 2) seed capital stage financing; 3) venture capital stage financing; and 4) expansion stage debt.

Gov. Nixon’s administration will also invest $10 million of the SSBCI funding to the Grow Missouri Loan Participation fund. That program supports the formation and growth of businesses in the industrial, commercial, agricultural, and recreational sectors. It provides loans of up to $3 million to businesses with fewer than 500 employees to help attract new enterprises and expand existing companies.

In addition, the Governor briefed roundtable participants on the Missouri Small Business Loan Program, another resource for small businesses in the state. Governor Nixon established the Small Business Loan Program in 2009 to assist firms of 15 employees or less in accessing capital through low-interest loans. Since establishment of the program, 52 Missouri small businesses have received loans of up to $50,000.

Today, Gov. Nixon toured Envision Tech in St. Joseph. The business, owned by T.J. Baur, is a high-tech machine shop that serves as a vendor for the aerospace industry. During the visit, Gov. Nixon also led a roundtable discussion with Bauer and other small business owners, including:

· Mario Fantasma, CEO of Paradise Locker, a company that produces custom meats and sausages in Trimble;

· Ryan Evans, owner of Evans Computer Service in St. Joseph;

· Fred Ide, owner of Bright Disposal, a trash removal and garbage collection service in St. Joseph; and

· Larry Cunning, owner of C.V.B. Water Doctor, a water conditioning and purification service in St. Joseph.

Gov. Nixon discussed the challenges and opportunities facing each business, and provided details about how the SSBCI and Missouri Small Business Loan programs, among others, could help these small firms grow. The Governor was joined by Director David Kerr of the Missouri Department of Economic Development, who provided details about the application process for the IDEA and Grow Missouri loans.

Applications for these loans are now available at MO.gov, along with information about the application process and other details.