Milestone Reached – $1 billion in Low-Interest Loans Approved Since 2009

JEFFERSON CITY – Calling it a milestone for entrepreneurs, small business and agriculture in Missouri, State Treasurer Clint Zweifel announced that he has approved more than $1 billion in low-interest Missouri Linked Deposit Program loans since January 2009.

The loans impacted more than 17,500 jobs and farmers, saving Missourians an estimated $18.4 million in annual interest.

The loan volume also increased 61 percent when compared to the previous four-year period of January 2005 to December 2008 when $634.5 million in loans were approved.

Zweifel’s 2009 Economic Development package made this milestone possible. The centerpiece of the legislation allowed more farmer eligibility and small businesses with up to 99 employees to qualify, where previously a business was limited to 24 or fewer employees. As a result of the change, $219 million in additional loans were approved, impacting 6,650 jobs and farmers.

Streamlined changes brought about by the law also increased access to capital for companies adding and retaining jobs, alternative energy producers and local governments. Additionally, the loan program was permanently extended in 2011, providing crucial certainty to the marketplace.

“We have reached a milestone today – $1 billion back into Missouri’s economy at the most critical time,” Treasurer Zweifel said. “When I took office I directed my administration to act quickly to make the Missouri Linked Deposit Program work better for entrepreneurs, small business owners and farmers. Today’s $1 billion announcement is proof positive that we are still growing because we have an entrepreneurial tool that works for Missourians. We have doubled our lender partnerships, we have guaranteed access to low-cost capital and we continue to make smart investments.”

Qualifying borrowers generally save 30 percent on the cost of the loan. 

About 130 lenders with 350 branches use the Missouri Linked Deposit Program, and an extensive list of participating lenders and program eligibility guidelines are available at www.treasurer.mo.gov/LinkedDeposit.

The following is a summary of loans made since 2009:

• Kansas City Region: $101 million, impacting 2,000 jobs and farmers.
• Mid-Missouri Region: $295 million, impacting 4,200 jobs and farmers. 
• Northeast Missouri Region: $129 million, impacting 2,300 jobs and farmers.
• Northwest Missouri Region: $62 million, impacting 1,100 jobs and farmers.
• Southeast Missouri Region: $125 million, impacting 2,100 jobs and farmers.
• Southwest Missouri Region: $131 million, impacting 2,100 jobs and farmers.
• St. Louis Region: $179 million, impacting 3,700 jobs and farmers.