MOBUCK$ program provides low-interest loans to small businesses
SPRINGFIELD, Mo. (KY3) - As interest rates rise, it could become difficult for farmers, business owners, and communities to borrow much-needed funds.
The Missouri Treasurer’s office works with local lenders to lower interest rates for qualified borrowers.
“We’re at a time right now where interest rates are going up, and I believe that they’re going to continue to go up,” said Missouri Treasurer Scott Fitzpatrick. “If we do end up in any kind of recession, or we end up on a bumpy road economically. It’s important for businesses to have access to affordable capital.”
MOBUCK$ is a linked deposit program that helps institutions obtain funds at lower interest rates. This means the Missouri Treasurer’s Office will provide money to a lender to fund a loan. The money is provided to the lender at a discount market rate. Then the lender passes on the savings to the borrower.
“The bigger the loan, the more savings that are going to be,” said Fitzpatrick. “But not all loans are, you know, a million dollars, right? This can be anything, you’re buying a vehicle, and you need to finance a vehicle or a small piece of equipment. It can be as much as building a whole new manufacturing facility, or it can be a loan for a farmer, or it can be a loan against cattle, whatever that that need is the program can service that.”
Through this program, lenders can lower the interest rate by 2-3%. The program was previously known as____. The Treasurer’s office has partnered with more than 140 lenders in the state to provide these loans to qualified borrowers. Terry Harden with Terry’s Towing received a MOBUCK$ loan and could pay off the note early thanks to the lower interest rate.
“If you want to save money, better do the MOBUCK$ loan. More money in your pocket is less money than somebody else’s,” said Harden. “So it’s a win-win for you.”
There are six different program categories, and they all have different requirements. For more information on the MOBUCKS Program, Click HERE.
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