MOBUCK$ loan funding used up in six hours

Missouri state Treasurer Vivek Malek announced Wednesday, Jan. 3, that all funding for new MOBUCK$ loans was exhausted in the first six hours they were available because of high demand.

"In only six hours on Tuesday, we received 142 applications for just over $119 million in MOBUCK$ funds that became available with the start of the new year," Malek said in a news release. "That consumed all available loan capacity. Still, I am grateful that farmers, small businesses and providers of much-needed multi-family housing were able to take advantage of relief from high interest rates through MOBUCK$ loans."

The MOBUCK$ application portal had been closed since May when deposits reached their statutory limit.

Since the program has reached its statewide capacity of $800 million, it is closed for new loans until further notice.

The loans became available on the first business day of the new year. Small business owners applied for 97 of the loans, 39 more applications were received for agri-business and six other applications came from multi-family housing projects.

The maximum amount available for a single loan was $5 million.

Applicants had to be headquartered in Missouri, have fewer than 100 employees, be in good standing with their taxes, and have no defaulted loans in the past or any felony charges.

MOBUCK$ works through the state treasurer depositing money with qualified banks, which then pay the state a reduced interest rate for those deposits.

This allows the banks to provide MOBUCK$ loans to qualifying borrowers with an approximate 30% reduction in the borrower's interest rate.

In November, Malek visited cities in Southeast Missouri, including Perryville and Cape Girardeau, to promote the program.

Do you want more business news? Check out the B Magazine email newsletter. Go to www.semissiourian.com/newsletters to find out more.