JEFFERSON CITY, Mo. — One representative is looking to help Missouri small businesses by raising the limit on linked deposit investments.
Rep. Jack Bondon’s HB 1029 would increase the amount the State Treasurer may invest in linked deposits to help small businesses. This is part of the Missouri Linked Deposit Program which serves to give low-interest loans to Missouri business to encourage innovation and advance economic development.
Currently, no more than $720 million may be deposited at one time with no more than $110 million of linked deposits to small businesses. The measure changes those limits to $800 million and $190 million, respectively.
Bondon noted that the cap of the program has increased significantly in usage and that not expanding the program could severely hinder Missouri’s relationship with small business.
“Even within just the last year, we’ve gone from [using] 35 percent [of the] cap of the program, and we have jumped to almost 85 percent of the program. So its jumped 50 percent [in] usage in one year,” Bondon told The Missouri Times. “At this rate, if we don’t raise the cap we will have already hit it and then we won’t be able to help any more small businesses.”
Bondon said the bill would increase the cap on the program by $100 million alleviating the strain on the state treasurer and dedicating money to small businesses.
“The linked deposit program is a program whereby the state treasurer can deposit money into banks. The bill increases the cap on the linked deposit program from $720 million to $800 million. That extra million dollars are specifically allocated to investment in small businesses,” Bondon said. “The state already receives a low rate of return on its whole portfolio, but this allows the treasurer to invest in some things that have a bit lower yield as long as they help small businesses and Missouri based businesses have a consistent and predictable interest rate on loans.”
Bondon expressed his gratitude to the state treasurer for his support of the advancement of small businesses.
“I’m grateful to the state treasurer for his interest in this program,” Bondon said. “I think it’s very important that we continue to do all we can to help Missouri-based businesses.”
The bill passed out of committee on March 12 and currently sits on the House Perfection Calendar.