With state Treasurer Clint Zweifel in tow, representatives Tim Flook, R-Liberty, and Paul LeVota, D-Independence, promoted legislation they say could help small businesses obtain low-interest loans from local banks to expand, while also helping the state earn higher interest on millions of dollars in bank deposits.

The officials stopped by the Liberty Area Chamber of Commerce office recently, before heading for Kansas City as part of a whirlwind tour across the state to promote “Invest in Missouri,” proposed legislation currently wending its way through the General Assembly.

Flook introduced the bi-partisan bill in the House, which if approved, would remove the interest rate cap on money the state has on deposit with nearly 100 banks across the state, mostly in short-term, six-month accounts and it would also create more flexibility in the Linked Deposit Program.

Flook said the interest the banks currently pay the state is comparable to six-month U.S. Treasury bills. Last week, six-month T-bills were yielding a little more than four-tenths of 1 percent in interest.

“The bankers don’t like this, but we need to be able to shop around and get better interest rates,” Flook said. “Taxpayers deserve a fair rate of return on their money.”

Zweifel said Missouri was only one of two states that caps the amount of interest the state can earn on its deposits. The other is Alabama.

Zweifel said the proposed legislation would not only increase community investment and taxpayer return but would allow small businesses to borrow money at a lower interest rate to grow their business and add jobs.

Flook said by removing the restrictive cap, the state could earn an estimated $10 to $15 million more in interest per year.

Without the restriction, Zweifel said the state would have an additional $250 million to place in local banks.

Invest in Missouri includes modifications to the Linked Deposit Program that is designed to place state funds with community banks at below market rates to benefit borrowers. Flook said currently the loans are available to companies that have 25 or fewer employees, but his legislation would raise that number to 100 employees, making more small businesses and entrepreneurs eligible for the loans.

Zweifel said the $720 million Linked Deposits Program is only about 30 percent utilized now, and he hoped by expanding the guidelines and streamlining the process and by making more small business owners and farmers aware of their options that participation would increase.

“What the treasurer is doing is trying to help grow businesses and help grow jobs,” LeVota said. “You hear a lot of rhetoric about bi-partisan cooperation, but Rep. Flook is actually doing that.”

 
INVEST IN MISSOURI 

State Treasurer Clint Zweifel says if Invest in Missouri legislation passes, it could:
- Reinvest $1 billon in Missouri communities
- Create and retain jobs
- Help agriculture, small businesses, alternative energy and public works projects obtain low-interest loans through local banks

Liberty Editor Angie Anaya Borgedalen can be reached at 781-4941 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .