The Federal Reserve has raised interest rates to combat ongoing inflation. Due to the decisions, and this year’s drought impacting Missouri farmers, the state has temporarily suspended applications for its low-interest loan program.

Missouri State Treasurer Vivek Malek said the MOBUCK$ program had to be suspended because the $800 million designated for the program was quickly running out.

“As interest rates rose, there was a lot of interest and we received a lot of applications. We were just overwhelmed with the amount of applications that were received and soon realized that we’ll be short on money,” Malek told Missourinet affiliate KFEQ in St. Joseph.

MOBUCK$ has been around for 40 years. The loans are available for small businesses, farmers, and local government agencies across Missouri. Malek said using this program allows lenders to lower their interest rates by about 2% to 3%.

“And during my tour of 44 counties, I have received a lot of good response both for the program and myself,” he said.

The State Treasurer’s Office plans to begin accepting applications for MOBUCK$ loans again, starting January 2.

The Missouri Legislature is expected to consider a bill next year that would increase MOBUCK$ funding from its current limit of $800 million to $1.2 billion.

By Tommy Rezac of Missourinet affiliate KFEQ in St. Joseph