MO BUCKS: BAILEY ANNOUNCES CREATION OF 272 JOBS

CAPE GIRARDEAU -- The MO BUCKS program is money in the bank as far as the state's economy is concerned, says State Treasurer Wendell Bailey.

"It's the number-one program in the nation in linked deposits," Bailey said during a visit Friday to Cape Girardeau, where he announced $6.8 million in state deposits will be used to create 272 jobs spread among three Cape Girardeau area manufacturing firms.

"We're really proud of it," said Bailey. "There are not very many things Missouri ranks number one in."

Bailey announced the low-interest loans for Magnetic Collectables, Horizon Manufacturing and M&W Packaging during visits to the three companies.

M&W will receive the bulk of the loan money $5 million. Another $1.25 million is earmarked for Horizon and $550,000 will go to Magnetic Collectables.

Bailey, who is seeking the Republican nomination for governor, said Cape Girardeau County is now one of the leading counties in the state in the use of MO BUCKS.

Earlier Friday, Bailey made a stop in Perryville to announce $2 million in low-interest loans, which will allow the creation of 80 new jobs in conjunction with the expansion of Solar Press, a direct mail company.

Under the MO BUCKS program, the state treasurer deposits state funds in Missouri banks at a rate that's 3 percent below the normal deposit rate.

The banks in turn loan the money at low-interest rates to businesses for the creation and retention of jobs.

"We simply make a low-interest deposit so the bank can make a low-interest loan and industry can create new jobs," said Bailey.

The Missouri Senate recently approved an education bill that includes a provision calling for utilizing $50 million in state deposits for student loans. The money would be allocated through the MO BUCKS program, Bailey said.

He voiced support for the education bill, which calls for tax increases to provide additional funding for the state's elementary and secondary schools and public colleges and universities.

But Bailey said he hopes that if such a tax measure is approved by voters, the money would go to education and not simply become part of the state's general revenue.

In the past, he said, so-called education taxes have raised money that has gone into the general revenue pot. Some of that money, he said, has been used to fund various state services and programs that have nothing to do with education.

As to the MO BUCKS program, Bailey said it originally benefited farmers and small businesses. It was expanded to large industries in 1988. Since then, nearly $100 million has been loaned to industries and used to create or save 13,796 jobs, Bailey said.

Overall, $330 million in state deposits have been made available to farmers, small businesses and industries in the form of low-interest loans since the program began.

"Of course, none of this works without the banks. The state of Missouri takes no risk at all," Bailey told reporters during a visit to Magnetic Collectables at 711 Good Hope.

The First Exchange Bank of Cape Girardeau has accepted a $550,000 deposit, which will be used to help fund expansion of Magnetic Collectables. The company produces novelty magnets.

"We have three shifts working at the plant and have hired over 25 new employees," said Roger Mainor, Magnetic Collectables president.

The $550,000 is the third MO BUCKS loan that the company has received. The two previous loans totaled about $350,000, Bailey said.

The company now has about 65 to 70 employees, with 44 of those jobs having been created through the MO BUCKS program.

Bill Stanfield, president of the First Exchange Bank of Cape Girardeau, said Magnetic Collectables has grown to the point that it needs a larger plant.

Mainor said his company has acquired the license to produce magnets of the Looney Tunes cartoon characters.

Bailey announced that Cape County Bank has accepted a $1.25 million state deposit that will provide a low-interest loan to Horizon Manufacturing. The company is creating 50 new jobs. Horizon manufactures microphone, speaker and guitar cables.

M&W Packaging is using a $5 million state deposit with Mercantile Bank of St. Louis to create 200 jobs.

Bailey said 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.

"For every job we create, about $1,200 in taxes come back to the state. A job is the best social program," he said.

The low-interest loans allow companies to more readily expand. "It's easier to grow at a 7 percent interest rate than at a double-digit interest rate," said Bailey.