BAILEY PROMOTES MO BUCKS, MO GROW AID

JACKSON - State Treasurer Wendell Bailey paid a visit Thursday to a Jackson day-care center that has been a beneficiary of his MO BUCKS program for small businesses.

Bailey held a news conference at the Ms. Dale's Home Sweet Home Child Care Center to discuss the success of the low-interest loan program for small businesses and agriculture.

He was accompanied by Dale Burrows, who was able to help fund her day-care center with a low-interest loan from Jackson Exchange Bank, which was made possible by the deposit of state funds in the bank.

Burrows said she appreciated the opportunity to be part of the program. She said her center has seven employees and cares for between 35 and 40 children.

Bailey explained that under the MO BUCKS program, the state deposits funds in local banks. In return, the banks agree to loan the money at low-interest rates to help stimulate small businesses and help farmers.

The treasurer noted that Jackson Exchange Bank has about $6 million in state deposits, including $3.24 million for the agriculture and small business program. In all of Cape Girardeau County, small business and agriculture deposits total $9,658,808 for 323 loans.

Bailey added that total deposits of state treasury funds in Cape County amounts to $18,544,808. In Perry, Bollinger, Scott, and Stoddard Counties, the total is $13,352,903.

Bette Wordelman, director of investments for the office, explained that the amount of money set aside for the small business loans was running short, so they decided to fund projects that would most benefit communities. The priorities were for day-care and recycling centers, she noted.

Wordelman said that loans totaling $150 million have been made to farmers and an equal amount loaned to small businesses in the state, with a maximum interest rate of 7.9 percent. "We think something good is being done in the community with these programs," she observed.

Bailey added, "MO BUCKS has one vein running through all deposits, and that is the creation of jobs."

Cape County companies that have participated in the MO BUCKS for More Jobs program are the Lee Rowan Co., SEMO Molding Co., Horizon Manufacturing, M&W Packaging, and Magnetic Collectibles. In all, the loans have helped create 564 jobs in Cape County.

The Jackson Iron Mountain and Southern Railroad has also received some funds as part of the tourism program.

Bailey, who was touring 54 communities in seven days to provide an update on the MO BUCKS program, also announced the creation of a new program known as MO GROW, the Missouri Growth Fund.

"This fund is in addition to our jobs program and is for community based projects that do not create jobs," explained the treasurer.

"The Missouri Growth Fund is designed to expand a financial institution's opportunities for funding activities that enhance the local community. MO GROW provides a flexible source of funds to Missouri's financial institutions while maintaining substantial returns on the state's investments. The program combines the resources of the Missouri treasurer, the people of the state, and the private financial community to provide economic incentives and benefits that are available and accessible to everyone."

Some of the projects being funded through the program are a downtown renovation in Sedalia, repair of water lines in Trenton, and the rebuilding of two churches in Eldon.

Bailey said he had received an inquiry from people in Cape Girardeau about funds for construction of a rape and abuse center.

There are no limits on funds, other than what the banking community comes up with, Bailey noted.

By participating in MO GROW, Bailey explained that the financial institutions gain access to sizable despots of relatively low-cost state funds. The program allows financial institutions to use state deposits to help underwrite the cost of community development obligations they have under the federal Community Reinvestment Act.

Bailey said he hopes to make as much money available to banks as possible. "We are a significant depositor in the region and we intend to do more," the treasurer promised.