STRICTLY BUSINESS: MISSOURI FIRST: A LOAN PROGRAM TO CREATE JOBS

Roger Williams knows the value of the Missouri First Linked Deposit Program for Job Creation.

"We used the program when we started here last year," said Williams, general manger of Cardinal Wood Products, which purchased a the former Lutesville Pallet Co. in 1995.

Cardinal Wood Products, which employs 34 people in Marble Hill, is using Missouri First funds again this year for an expansion project to buy machinery and equipment.

Under the Missouri First -- formerly Missouri Bucks -- program, the state treasurer places below-market-rate deposits of state funds in Missouri financial institutions. The institution agrees to pass on the savings in low-interest loans to borrowers who create or retain jobs.

$650 million, 41,000 jobs

Since the Missouri Bucks program started in 1985, more than $650.5 million have been used to save or create 41,000 jobs.

"Communities and workers all over the state are reaping benefits of a strong Missouri economy," said state treasurer Bob Holden, who was in Marble Hill last week to announced the latest Missouri First loan. "I'm pleased that the state treasurer's office can partner with local communities, financial institutions and businesses to create more job opportunities and a better life for Missouri's workers and their families."

Cardinal Wood manufactures wooden shipping pallets and crates for a variety of industrial customers.

Some major new contracts are fueling the expansion for Cardinal, said Williams.

The latest Missouri First loan will create an additional 14 jobs.

Cardinal Wood Products first used the loan program last year when it received $250,000 in a loan from the Bank of Advance to help finance the purchase and reopening of the former Lutesville Pallet Co. and for upgrading of machinery and equipment.

The latest Cardinal Wood Products loan -- $350,000 -- will also be through the Bank of Advance.

"If we see the need to expand in the future, we'll look to Missouri First again," said Williams.

Southeast Missouri big user

A number of Southeast Missouri industries have used the state's "Missouri First" program.

In 1994, two Perry County businesses used the funds. TG (USA) Corp. and Altenburg Hardwoods Lumber Co., received combined financing of almost $6 million.

The money was awarded to the companies through Mercantile Bank of St. Louis and Boatmen's National Bank of Cape Girardeau for the projects.

TG (USA), which manufactures automotive parts like air bag assemblies, steering wheel assemblies and plastic interior and exterior parts, received $5 million to fund the 125,000-square-foot expansion of its plant along Highway 51 northeast of Perryville.

The company is already in its new facility, and employs more than 800 workers, up from 650 employees before the expansion.

The linked deposit program provided $990,000 to Altenburg Hardwoods Lumber Co. to retain workers. Altenburg Hardwoods was founded in October 1993 by Dean Calhoun of Coldwater Veneer, which purchased a sawmill and equipment from the former Timber Exports Products.

Altenburg Hardwoods manufactures sap-free and defect-free white oak lumber. The majority of its customers are in Europe.

Other users of the funds in Perry County include Solar Press and Gilster Mary Lee. Perry County businesses have been big users of the funds. Since the program started, Perry industry has used $13.3 million to create or maintain more than 650 jobs.

Cape Girardeau: $11.8 million

Cape Girardeau industry has used $11.8 million from the loan program to create or keep more than 500 jobs.

Among Cape County loan recipients have been Mildenberger & Willing (M&W) Packaging U.S. Inc., which used a $5 million state deposit with Mercantile Bank of St. Louis to help create more than 200 jobs following start-up of the plant.

Magnetic Collectibles has used three Missouri First loans of more than $900,000 to create more than 50 jobs. The latest loan by Magnetic Collectibles was for a new plant. Horizon Manufacturing, which manufactures microphone, speaker and guitar cables, has used the loan program twice.

Among other Southeast Missouri companies which have received Missouri First funds include Cap America of Fredericktown in Madison County and Raben Tire in Scott County,

$33 million, 1,900 jobs

During the past decade, 10 Southeast Missouri counties have combined to use almost $33 million in the low-cost loans to create or save more than 1,900 jobs.

Industries in six of the 10 counties have borrowed more than $1 million. Behind Perry and Cape Girardeau counties are Stoddard ($1.9 million, 194 jobs); Madison ($1.7 million, 376 jobs; Bollinger, ($1.2 million, 76 jobs); Scott County ($1.1 million, 11 jobs); Pemiscot County ($950,000, 36 jobs); and Dunklin, $600,000, 28 jobs. Mississippi and New Madrid counties have yet to use the loan program.

The former Missouri Bucks program originally benefited farmers and small businesses. It was expanded to large industries in 1988.

"Agriculture is a big part of the program," said Don Kling of the state treasurer's public affairs office. Missouri First funds may also be used by farmers to purchase land, agriculture equipment and supplies.

10th year big one for lottery

The 10th year for the Missouri Lottery has been the biggest ever.

Missouri Lottery ticket sales for fiscal 1996 topped $422 million, breaking sales records, topping 1995 sales by more than $10 million.

During the past decade, not only Missourians, but residents of neighboring states have plunked down $2.8 billion for a chance at finding a pot of gold.

Since the first lottery ticket was sold 10 years ago, the Missouri Lottery has grown from $207 million in annual sales to more than $422 million a year.

During fiscal year 1996, the lottery generated more than $132 million for education, up $7 million from 1995.

Record sales meant a record year for lottery retailers and players. Total prizes, ranging from $1 to $69 million, awarded to players reached more than $229 million and retailers' commissions, and incentives for selling Missouri Lottery products were about $26.4 million.

In addition, 13 Missouri Lottery players became millionaires in fiscal year 1996, including the lottery's biggest jackpot -- a $69 million Powerball jackpot won by Jerry Sue Huellewig of St. Charles.

B. Ray Owen is the business editor of the Southeast Missourian.