- Cape businessman known for starting NARS dies at 49 (2/23/17)9
- Man shot by police ID'd; witness shares his side of story (2/17/17)31
- MSHP: McLendon shot in side; autopsy refutes witness account (2/19/17)23
- Apparent punch at girls basketball game propels lawmaker into action (2/21/17)4
- Business notebook: Owners ready to roll out the Barrel 131 (2/20/17)6
- Missouri bill would limit transgender school bathroom access (2/22/17)47
- Annual father-daughter dance provides some fun bonding time (2/19/17)1
- SoutheastHEALTH, Washington University School of Medicine announce collaboration (2/24/17)16
- City issues precautionary boil order near Arena Park (2/23/17)
- $22M bond issue would alter Jackson schools (2/22/17)12
A good investment
Bills in the Missouri House and Senate that would increase the state's investment in low-interest loans for small businesses and farmers sailed through both chambers without a single dissenting vote, an indication of the statewide support for the program.
The bills, whose differences must be resolved by a conference committee, would double the state's cap on linked-deposit investments to $720 million. Because the state treasurer cannot constitutionally lend money, linked deposits allow banks to make low-interest loans and receive state deposits for the same amount. The bank assumes all the risk of the loan.
A good deal of Missouri's funds are deposited outside the state in order to obtain the best rate of return. But advocates of the increase in linked-deposit loans say helping businesses in the state generates economic activity and results in more jobs and increased tax revenue. State Treasurer Sarah Steelman estimates this new emphasis on linked-deposit loans could generate $46 million in additional revenue for the state, once the program is fully implemented over the next few years.
Using state deposits to spur the economy and help create jobs is good business for Missouri. This program deserves quick action by the governor once the final bill reaches his desk.