LOCAL FIRM BENEFITS FROM STATE PROGRAM

Horizon Manufacturing, Inc., with a new electronics division in its operation, has received its third MO BUCKS loan for an expansion project that will create 50 new jobs.

Missouri Treasurer Wendell Bailey an~nounced Friday that he had approved a $1.25 million deposit of state funds with Capital Bank of Cape Girardeau under the "MO BUCKS for More Jobs" program that provides low-interest loans so industry can create new jobs.

"We're proud of our MO BUCKS program," said Bailey, who created the program a half-dozen years ago to save jobs in the state. "There are not many things that Missouri ranks number one in, but this is one of them."

Bailey, who is also seeking the Republican nomination for governor, was in Cape Girardeau Friday to announce approval of Horizon's third MO BUCKs loan.

"We founded this company in June of 1990 with about 12 people," said Ernie Eudy, chief executive officer of the firm located at 230 N. Spring. "Our first-month sales were $35,000. Last month, our sales topped $800,000 and we're currently employing 110 people. Our expansion into new products for the guitar market, both in the U.S. and abroad, will result in 50 new workers this year."

Horizon has received two previous loans, in 1990 and 1991, each for $1.25 million. "The company has created more than 100 jobs during that time," noted Bailey.

"The MO BUCKS program has been an important factor in our growth," said Eudy, who added that the company is looking for more space. "We have about 28,000 square feet here. We need about 50,000 square feet."

The MO BUCKS program is a $110 million fund in the Missouri Treasury that is invested with Missouri financial institutions at three percent below the usual deposit rate for one year when the bank agrees to loan the funds to a company that is creating or saving jobs in Missouri.

"At least one job should be created or saved for each $25,000 deposited and loaned," said Bailey.

The MO BUCKS program was devised by Bailey in 1986 to benefit farmers and small businesses. It was expanded to large industries in 1988. Since the industrial program started in August 1988, it has helped to create or save a total of 21,017 jobs with 381 deposits totaling $365,402,154, said Bailey.

Cape Girardeau County has shared in the program, creating more than 395 jobs with eight previous deposits totaling more than $9.5 million.

"Of course, none of this works without the banks. The state of Missouri takes no risk at all," Bailey told reporters Friday as he handed checks to Capital Bank officials and Horizon officials.

"These checks are important," added Bailey. "But, the most important checks are those checks passed out each week to the 110 people who work at Horizon. After this year, 160 people will be receiving checks here.

"The state program places a high priority on aiding high-growth companies because creation of jobs is important to the economic health of the state," said Bailey.

"For every job we create, about $1,200 in taxes come back to the state. A job is the best social program," he said. "These low-interest loans allow companies to more readily expand. It's easier to grow at a 7 or 8 percent interest rate than at a double-digit interest rate."

Following his visit to Horizon, Bailey attended a fund-raiser at Cape County Park and visited with Kala Stroup, president of Southeast Missouri State University, before leaving the area to participate in a live, televised debate Friday night among GOP gubernatorial candidates at Springfield. Participating in the debate were Attorney General William Webster, Secretary of State Roy Blunt, the Rev. Dwight Watts of Joplin, and Bailey.