By Blake Jackson
Missouri Treasurer Vivek Malek's MOBUCK$ program, offering low-interest loans, saw an overwhelming response, exhausting its $119 million funds within six hours on January 2. Launched in 1985, MOBUCK$ collaborates with 136 state banks, benefiting small businesses, agriculture, and local governments. Malek, touring 45 counties to promote the program, aims to retain his state treasurer position amidst a crowded GOP primary.
The linked-deposit loans reduce borrowers' interest rates by about 30%, funded by below-market interest rates paid by banks to the state. Malek's office approved over $350 million in linked deposits since his appointment. To assist more borrowers, the maximum loan amount was lowered from $10 million to $5 million before the latest round of applications. Focus areas include farmers, small businesses, local governments, agriculture, and affordable housing.
Legislators Sen. Sandy Crawford and Rep. Terry Thompson proposed bills to raise the funding cap to $1.2 million in response to the surge in demand, aiming to support qualified borrowers against inflation. House Bill 1803, aiming for a funding increase, is under consideration in the House Financial Institutions Committee. Thompson emphasizes the urgency of expanding the program, citing rising interest rates from 3.75% in 2021 to 8.5% currently, a concern echoed by businesses and farmers. Malek supports legislation to raise MOBUCK$'s maximum capacity by $400 million, striving to provide more relief to strengthen Missouri's economy. The last round of applications closed in May 2023 when the state reached its $800 million threshold, highlighting the program's popularity and necessity.
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Categories: Missouri, Business, Government & Policy