INVEST IN MISSOURI goes to work as new Missouri Linked Deposit Program

State Treasurer Clint Zweifel's INVEST IN MISSOURI swept through both chambers of the General Assembly without a single "no" vote during the 2009 legislative session and was signed by Governor Nixon. The new Missouri Linked Deposit Program went into effect Aug. 28, 2009.

Read the full news release about the signing.
INVEST IN MISSOURI Legislation - HB 883

Changes to Missouri Time Deposits took effect Jan. 1, 2010.
Learn more about Missouri Time Deposits.

IN THE NEWS

• Endorsed by the Joplin Globe, The Kansas City Star, the Southeast Missourian, and the
  St. Joseph News-Press.

Strengthening communities by INVESTING IN MISSOURI

Small Business

Clint remains committed to helping Missouri's small businesses. The Small Business Linked Deposit Program provides reduced-interest loans through Missouri's financial institutions, to enable Missouri's small-business owners to grow their businesses. Currently, this program is only available to businesses employing less than 25 full-time employees. Clint proposes legislation to raise the limit on full-time employees to 100. Many small businesses have been unable to participate in this program because of this limitation, and eliminating it will allow small businesses to grow and benefit Missouri's communities.

Agriculture

Investment in agriculture is a priority of this administration. Clint proposes legislative changes to the Farm Operation Linked Deposit Program that would eliminate the provision that excludes farmers from the program if they have 60% equity in their farming operation. Many of Missouri's farmers rely on this program, and by expanding it, we are helping farming operations throughout the state.

Job Enhancement

Clint remains dedicated to creating jobs for the people of Missouri. With unemployment rates at 30-year highs, there has never been a more important time to help provide good jobs to Missourians. Current law restricts the amount larger businesses can borrow through the Job Enhancement Linked Deposit Program to $50,000 for every job created or retained. Almost all sectors of the economy, but particularly the manufacturing sector, are more capital-intensive than 20 years to 30 years ago. Frequently, when companies have applied for this program, there is a large capital outlay, such as construction of a new facility involved. Clint is proposing an adjustment that will allow companies to borrow the $50,000 for each job plus the amount for capital outlay, physical expansion or renovation associated with the job. By expanding this program, we are significantly increasing the chances that companies will be able to grow and provide jobs to Missourians.

Local Government Assistance

The creation of the Government Entity Linked Deposit Program will provide linked deposit loans for any political subdivision for capital improvements or other significant public programs. This will help communities purchase fire trucks, improve infrastructure or provide enhanced public safety. Furthermore, it creates an incentive for community banks to invest in Missouri. Smaller local governments sometimes use bank loans to help finance major capital improvements, such as providing matching funds for sewer and storm water projects.

Alternative Energy

The newly created Alternative Energy Linked Deposit Program limited the program to businesses that produce and sell alternative forms of power. Clint proposes the creation of a new program for individuals who want to acquire the means to produce alternative energy (e.g., solar panels). Providing incentives for people to sustain themselves, free of fossil fuels, will pave the way for job creation and the growth of a new sector in the economy. This is the next big movement in this country, and helping Missourians free themselves from dependency on oil helps prepare us for the future.

Putting Money Back in Missouri's Banks

Current state law provides a disincentive for the State Treasurer's Office to place deposits with Missouri banks by artificially capping the deposit rate the State can receive on its deposits, as opposed to counties, cities, and school districts that can receive the market rate. Money invested in Missouri's banks can only receive a return equal to the rate of the treasury yield, which has recently been as low as 0.20%. Missouri is one of only two states with a restriction that limits the return for taxpayers. By removing this cap, Clint can dramatically increase deposits with community banks, thereby providing millions of dollars of additional liquidity to banks who can make new loans to individuals and businesses. Now is the time to reinvest in Missouri and increase the yield for our taxpayers.

Small Business

Treasurer Zweifel is committed to helping Missouri's small businesses. The Missouri Linked Deposit Program for Small Business partners with banks to provide low-interest loans through Missouri's financial institutions, to enable Missouri's small-business owners to grow their businesses. Prior to INVEST IN MISSOURI, this program was only available to businesses employing less than 25 full-time employees. Treasurer Zweifels legislation has raised the limit on full-time employees to less than 100. Many small businesses had previously been unable to participate in the Missouri Linked Deposit Program because of this limitation, and this enhancement will allow businesses to grow and benefit Missouri's communities.

Agriculture

Investment in agriculture is a priority of this administration. INVEST IN MISSOURI changed the Farm Operation Program by eliminating a provision that excluded farmers from the program if they had 60% equity in their farming operation. Many of Missouri's farmers rely on these low-interest loans, and by expanding them, Treasurer Zweifel is helping farming operations throughout the state.

Job Enhancement

Treasurer Zweifel is dedicated to creating jobs for the people of Missouri. With unemployment rates at 30-year highs, INVEST IN MISSOURI focused on creating good jobs at a critical time. Previous law restricted the amount larger businesses can borrow through the Missouri Linked Deposit Program for Job Enhancement to $50,000 for every job created or retained. Almost all sectors of the economy, but particularly the manufacturing sector, are more capital-intensive now. Treasurer Zweifel’s INVEST IN MISSOURI adjusted that restriction to allow companies to borrow the $50,000 for each job plus the amount for capital outlay, physical expansion or renovation associated with the job. By expanding this low-interest loan program, Treasurer Zweifel significantly increased the chances that companies will be able to grow and provide jobs to Missourians.

Local Government Assistance

The creation of the Missouri Linked Deposit Program for Government Entity Program provides low-interest loans for any political subdivision for capital improvements or other significant public programs. This helps communities purchase fire trucks, improve infrastructure or provide enhanced public safety. Furthermore, it creates an incentive for community banks to invest in Missouri. Smaller local governments sometimes use bank loans to help finance major capital improvements, such as providing matching funds for sewer and storm water projects.

Alternative Energy

The Missouri Linked Deposit Program for Alternative Energy originally limited the program to businesses that produced and sold alternative forms of power. Treasurer Zweifel’s INVEST IN MISSOURI allows low-interest loans for individuals who want to acquire the means to produce alternative energy (e.g., solar panels). Providing incentives for people to sustain themselves, free of fossil fuels, paves the way for job creation and the growth of a new sector in the economy. This is the next big movement in this country, and helping Missourians free themselves from dependency on oil helps prepare us for the future.

Putting Money Back in Missouri's Banks

Previous State law provided a disincentive for Treasurer Zweifel to place deposits with Missouri banks by artificially capping the deposit rate the State can receive on its deposits, as opposed to counties, cities and school districts that could receive the market rate. Money invested in Missouri's banks could only receive a return equal to the rate of the treasury yield, which was as low as 0.20%. Missouri was one of only two states with a restriction that limits the return for taxpayers.

Invest in Missouri removed the cap, and now Treasurer Zweifel can dramatically increase deposits with community banks, thereby providing millions of dollars of additional liquidity to banks who can make new loans to individuals and businesses.

This change is effective Jan. 1, 2009, and the interest rate cap will be phased out by Jan. 1, 2014.