Missouri officials have been promoting a state program that gives millions of dollars in low-interest loans to those who create a corporation in the state and work to expand and create jobs, the Liberty Tribune reports.
The Linked Deposit program is a partnership between the state’s Treasury Department and banks, and helps lenders reduce the interest rate on loans by as much as 3 percent. While the program itself has been around for years, recent legislation has reduced eligibility restrictions and made it easier for small businesses to take advantage.
“We have been able to touch the businesses that are the building blocks of Missouri and our economy,” Missouri State Treasurer Clint Zweifel said in an interview with the Tribune.
The paper reports that the program has already awarded $340 million in loans, and still has another $720 million in lending capacity.
The linked deposit program also provides funding for individuals and businesses to help them install alternative energy technology. The small business portion has a “soft cap” of $330 million – meaning the state can exceed it if they feel it will provide a significant return.