Missouri State Treasurer says more than $500 million in low-interest loans going underutilized

State Treasurer Clint Zweifel said state funds available to local banks and businesses that are creating jobs.

Zweifel held a press conference at Hannibal Machine Inc., on Wednesday to tout the "new and improved" Missouri Linked Deposit Program.

The 20-year-old company expanded into agricultural products this year, with the creation of Tri-State Ag Products, thanks to a low-interest loan from F & amp;M Bank of Hannibal.

"It takes a full interest point off the loan," said Harold Haycraft, president of Hannibal Machine.

Zweifel said the Linked Deposit program has been around for years, but is underutilized.

"We have $720 million available and only about $200 million is being used," Zweifel said.

Legislation approved this year with unanimous support from both the House and Senate has lowered restrictions on the loan program.

Zweifel said employers with up to 100 employees can qualify for low-interest loans now, and job retention plans can qualify. Loan approval is now possible within one week, rather than six weeks, he said.

"The ag borrowing portion of the program is actually the cornerstone" of the Linked Deposit Program, Zweifel said.

Sen. Wes Shoemyer, D-Clarence, said Zweifel brought the loan program improvements to the Legislature and worked for passage. Shoemyer said the legislation is popular because it spurs investment, creates new wealth and creates jobs that keep young adults in the state.

"It’s a real success story," Shoemyer said.

Haycraft has five workers on staff at Tri-State Ag Products, which was launched Aug. 2. He hopes to add workers as the economy recovers.