Zweifel Touts INVEST IN MISSOURI in Cape Girardeau
Treasurer stops at local business to discuss job creation and community investment
Friday, February 20, 2009
CAPE GIRARDEAU, Mo. – State Treasurer Clint Zweifel was in Cape Girardeau at the General Sign Company today to tout INVEST IN MISSOURI, his plan to create and retain Missouri jobs and to reinvest more than $1 billion in communities throughout the state.
INVEST IN MISSOURI, which requires legislative action, expands eligibility in the Missouri Linked Deposit Program, significantly increases the amount of state funds invested in community banks and increases return on invested state funds.
“Increasing investment in small businesses like General Sign Company is a strategic priority of my office,” said Treasurer Zweifel while visiting General Sign Company. “General Sign Company invests directly in human capital, infrastructure and its community, and has been doing so since 1939. Providing a streamlined and more flexible Linked Deposit Program is an important tool to incentivize more small businesses to create Missouri jobs.”
Under current state law, General Sign Company, which has about 30 employees, would not qualify for a reduced-interest Small Business Linked Deposit loan administered by the State Treasurer’s Office because it has too many employees. This is in contrast to the United States Small Business Administration, which would consider General Sign Company a small business. The state statutory restriction for small businesses receiving a Small Business Linked Deposit loan is 25 full-time employees. Treasurer Zweifel’s proposal would increase the cap to 100 full-time employees, boosting small businesses as they grow through different stages.
“I commend Treasurer Zweifel’s proposal to expand the cap on the Small Business Linked Deposit Program,” said Russ Wilson, general manager of General Sign Company. “It is programs like this that allow companies to stay in Missouri and help their communities.”
Treasurer Zweifel also called for removing a restriction placed on farmers through the Farm Operation Linked Deposit Program. State statute says that any farmer with more than 60 percent equity in his/her farm cannot receive a reduced-rate linked deposit loan. Treasurer Zweifel proposed removing that cap in order to expand eligibility.
In addition to changes to the Missouri Linked Deposit Program, INVEST IN MISSOURI focuses on the placement of Missouri time deposits, which are state funds deposited in community banks. Treasurer Zweifel said INVEST IN MISSOURI requires legislative action because existing state law restricts the investment return taxpayers may receive on their money placed as time deposits.
“Missouri is one of two states in the nation, and the State Government is the only government entity in Missouri, which caps the interest rate taxpayers receive when their funds are invested in community banks,” Treasurer Zweifel said. “By removing the cap, we can immediately place another $250 million in Missouri communities through banks, and the better interest rate on state funds allows us to earn an additional $10 million per year for Missouri taxpayers.”
“It would be irresponsible for the interest-rate cap to be allowed to exist given the major economic crisis we face. Expanded linked deposit eligibility and the interest-rate cap removal will allow us to reinvest $1 billion in Missouri and earn needed return for taxpayers.”
Zweifel has been working with Republican and Democratic leaders in the Missouri House of Representatives and Missouri Senate to introduce legislation to enact INVEST IN MISSOURI.
About the Missouri Linked Deposit Program
The Linked Deposit Program is designed to place state funds with community banks at below-market rates so the community bank can issue loans to borrowers at a reduced rate. Loan savings is usually 2 to 3 percent to the borrower. The program, which has a statutory $720 million cap on it, is about 30-percent utilized currently.
# # #
