Purpose
The BIG
Missouri Linked Deposit Program is available for veterans or their spouses
who operate a farm or small business in Missouri. These
programs were established to both assist veterans and to stimulate small
business and agricultural development by providing access to low interest
rate loans.
Program
Objectives
The program makes state funds available at reduced
interest rates to lenders who agree to make reduced interest rate loans to
small business borrowers through the BIG Missouri Linked Deposit
Program. Participation in the program is limited to five years.
For small business programs, the funds may be used for
a small business’ operating or capital expenses or the refinancing of an
existing qualifying loan for such expenses including the purchase or
refinancing of real property. For the Farm Operations program, the most
widely used of the Agriculture linked deposit programs offered, the program
assists the established farmer with low cost operating funds for production
expenses including equipment purchase or rental, custom harvesting expense,
rent, wages, livestock, feed, fertilizer, chemicals, professional fees, or
renovations, repairs, expansion or purchase of buildings and ancillary fixed
assets (loading chutes, grain storage, etc.)
Eligibility
Veterans applying for a BIG Missouri
Linked Deposit must meet the eligibility requirements for each program as
established by the State Treasurer’s Office. Specific eligibility
requirements for each program can be found at
www.bigmissouri.com or on the loan application forms for each program.
Recognizing the important contributions
of reservists and members of the National Guard and the spouses of members
of the armed services, this program is available to these groups as well.
To qualify as a veteran under this program, the applicant must meet one of
the following criteria:
-
Veteran
-
Service-Disabled Veteran
-
Member of National Guard or Reservist
-
Current spouses of any of the above
-
Widowed spouse of a Service Member who died in service or who died of a
service-connected disability
Allocation of
Funds
A total of $720 million has been allocated for the BIG
Missouri Linked Deposit Program. Veterans who qualify under these programs
will receive preference for approval.
Interest
Rate on Loans
The loan rate provided to the borrower for a linked
deposit is set by state regulation and is dependent on the size of the
linked deposit loan. For loans under $100,000, the loan is calculated as:
sum of the current Prime Rate plus 1.50% multiplied by 75%. For loans over
$100,000, the loan is set based on a certification by the financial
institution of the normal lending rate that would have been offered to the
applicant. This lending rate is multiplied by 70% to determine the new loan
ceiling rate for the linked deposit applicant.
Certification
Borrowers are required to:
- To be in
compliance with all state and federal laws
- To meet
the eligibility requirements specified in the laws governing the linked
deposit program
- To use
loan proceeds only for authorized purposes
- Be
current on state taxes
Any loan proceeds not used for authorized purposes must
be returned to the lender. Misrepresentation of information provided in
order to obtain a linked deposit, or violation of certification
requirements, is a Class A misdemeanor. The Treasurer monitors compliance
with these provisions of the law.
Application Procedure
Applications for this program are available online at
www.bigmissouri.com, or you may contact the State Treasurer’s Office
in order to request an application:
Treasurer Sarah Steelman
Attn: Linked Deposit Program
PO Box 210
Jefferson City, MO 65102
(573) 751-2372
Click on the link below to download the application from this web site.
Complete the short and easy loan application, making sure to fill in or check all portions on the form. Submit the application to any participating financial institution. The financial institution will forward the
application to the Treasurer’s Office. Loan approval is determined by the financial institution, subject to its standard credit policy.
Download Applications Here
Other Veterans Links
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