Treasurer Clint Zweifel announces $575,000 small business loan in St. Charles impacting 23 local jobs
Loan saves local carpet cleaning company $37,000
ST. CHARLES, MO – February 5, 2010 – (RealEstateRama) — State Treasurer Clint Zweifel (ZWY-ful) was in St. Charles today to announce a $575,000 small business loan impacting 23 local jobs. Treasurer Zweifel made the announcement at Sams Carpet Cleaning and Repair. The low-interest loan, made through the Missouri Linked Deposit Program, will save the company an estimated $37,000 in interest costs. Qualifying borrowers generally save 30 percent on the cost of the loan.
“Job creation and moving Missouri’s economy forward in a fiscally sound manner are my top priorities. Giving small businesses like Sams Carpet Cleaning the ability to reduce interest costs lets them invest in an economic turnaround,” Treasurer Zweifel said. “This single loan impacts 23 local jobs and costs taxpayers nothing. It does what we need to do right now; help small businesses free up capital to expand and create new jobs. All told in 2009, we loaned out $200 million statewide impacting 2,300 Missouri jobs.”
Jeff Sams, owner of Sams Carpet Cleaning and Repair, used the $575,000 loan to refinance his 17,850-square-foot building in St. Charles. By using the Missouri Linked Deposit Program, his loan rate was reduced 2.15 percent. The interest savings on the loan will allow the company to expand its customer base.
“Participating in the Missouri Linked Deposit program has allowed our business to lower our interest rate, generating more cash flow. This will free up additional funds to invest in technology, training and expansion. For a small business owner like myself, the cost savings and extra capital comes at a great time and allows us to invest in updating our locally-owned and operated business,” Sams said.
First State Bank of St. Charles made the loan to the company after recently signing up to use the Missouri Linked Deposit Program. The bank was able to win the company’s business because of the low-interest it was able to offer through the loan program.
“The Missouri Linked Deposit Program allows our community bank to provide low-interest loans to qualified local small businesses. With reduced interest expense, businesses can use that savings to help strengthen their balance sheet and work toward future expansion,” said Luanne Cundiff, Senior Vice President of First State Bank of St. Charles.
Since January 2009, $13.1 million in loans have been approved for the St. Louis region, impacting 244 jobs and saving an estimated $275,000 in interest costs. St. Charles County has received $1.6 million of that investment, impacting 44 jobs saving an estimated $59,000 in interest. Crosby Chiropractic, LipoSpectrum and Sur-Med Instruments are a sampling of loans made in the St. Louis region.
The Missouri Linked Deposit Program, which was expanded in 2009 as part of Treasurer Zweifel’s jobs and economic development package, has $720 million in lending power. Of the $200 million loaned since January 2009, $6.9 million impacting 223 jobs was made possible by Treasurer Zweifel’s legislation.
Any farm in Missouri is eligible to receive a loan through the Missouri Linked Deposit Program and small businesses with up to 99 employees qualify. Additionally, local governments, housing developments and alternative-energy focused projects may qualify for the low-interest loans.
About 100 lenders with 175 branches throughout Missouri use the Missouri Linked Deposit Program. An extensive list of participating lenders and program eligibility guidelines are online at www.treasurer.mo.gov/LinkedDeposit.
A media kit with head shot and biography is available at: www.treasurer.mo.gov/MediaToolKit.asp
Contact:
Jon Galloway
(573) 751-7595 – Office
(573) 418-2923 – Cell
