MO Linked Deposit Program Offers Low-Interest Loans to Small Business
(Repost from Fox 2 News - St. Louis - watch broadcast here)
ST. LOUIS (KTVI) – Small businesses in Missouri have an opportunity to cash in on low-interest loans. State Treasurer Eric Schmidt said $500 million is available to help via the Missouri Linked Deposit Program.
Jerry Camsenzind, who owns local business Arctic Ice, said he obtained a low-interest loan from the state—in partnership with Enterprise Bank—and expanded his business. Using this program allows lenders to lower the interest rates to the borrower by about two to three percent.
“We put on a 12,000 square-foot freezer; it’s 20-foot tall. We got new docks and new parking,” Camsenzind said. Arctic Ice makes and packages 275 tons of ice a day on average. Schmitt said too many businesses are not taking advantage of this loan opportunity.
“Nine out of 10 businesses in Missouri are small businesses. We are trying to get the word out that the state has a lot of available dollars for small businesses at a lower interest rate,” Schmitt said.
The state treasurer wants to get these dollars on the street to boost up small businesses and create jobs. “We've got a tremendous opportunity in Missouri to lead the way nationally and in our office we want to be a source for businesses and banks as they look to expand that we have something available,” Schmitt said.
The Missouri Linked Deposit Program is well-funded, with $720 million available, but just over $200 million is being used. Banks like Enterprise see success stories like Arctic Ice and know there can be many more.
“This is a success story. Jerry started his company in the mid 1960s and it has been enterprise's pleasure to work with him since the early 1990s,” said James Grazer, Enterprise Bank.