Treasurer Stops with Sen. Pearce in Lee’s Summit, Raymore and Harrisonville
JEFFERSON CITY, MO – August 5, 2009 – (RealEstateRama) — State Treasurer Clint Zweifel and Sen. David Pearce, R-Warrensburg, were in Lee’s Summit, Raymore and Harrisonville today to outline for local bankers how a low-interest loan program is set to undergo expansion. The Missouri Linked Deposit Program was recently expanded as part of legislation developed by Treasurer Zweifel, called Invest in Missouri, to assist Missouri farmers and small businesses. The program allows qualified applicants to borrow low-interest rate loans to increase operations and make reinvestments.
“It is essential we work to put Missourians back to work,” Treasurer Zweifel said. “The low-interest loans available through the enhanced Missouri Linked Deposit Program are part of that effort.”
Invest in Missouri allows more Missouri small businesses and farms to use the Missouri Linked Deposit Program. These businesses and farms will be able to borrow at low rates in order to hire more workers, increase operations or even refinance prior high-interest rate loans.
The new eligibility guidelines go into effect August 28. Missourians may visit the Missouri Linked Deposit Program Web site at www.treasurer.mo.gov/LinkedDeposit.asp to learn more about the enhancements.
Additionally, Invest in Missouri phases out, over five years, the statutory interest rate cap that ties state time deposits to the return of short-term U.S. Treasury securities. That yield has been as low as 0.20 percent this year. Removing the restrictive cap will allow the state to receive a yield closer to the rates offered by banks to an individual, business or any other government entity in Missouri. The change will result in increased returns to taxpayers once the cap is fully phased out by law. The phase out will begin January 1.
“The cap cost Missouri taxpayers an estimated $10 to $15 million each year,” Sen. Pearce said. “As one of only two states in the nation to cap investment returns, it was time to change the law. Removing this artificial ceiling maximizes the taxpayers’ investments.”
Invest in Missouri legislation did not register a single “no” vote during the entire legislative process and was signed into law by Governor Nixon on June 29. “Governor Nixon set the priority of investing in small businesses in Missouri,” Treasurer Zweifel said. “There was commitment to pass Invest in Missouri at a critical time in our state, and that is exactly what has been accomplished.” Treasurer Zweifel and Sen. Pearce made stops at First Community Bank in Lee’s Summit, Community Bank of Raymore in Raymore and Allen Bank and Trust in Harrisonville.
Contact: Jon Galloway
(573) 751-7595 – Office
(573) 418-2923 – Cell
