A Missouri law has begun today that will expand the amount of funding in a popular low-interest loan program. The new law increases the annual cap on the MOBUCK$ program to $1.2 billion. Missouri Treasurer Vivek Malek asked lawmakers to raise the previous $800 million threshold.
“First time in the history of the state and the treasurer’s office, we hit the cap of $800 million and we practically ran out of money to give more loans,” Malek told Missourinet.
The MOBUCK$ program provides low-interest loans to farmers, small business owners, and local governments. It ran out of money twice within the past twelve months.
“(A) very tough situation for our farmers and small businesses to get money and credit at low interest costs,” said Malek. “With MOBUCK$, you can get a loan practically at about 30% reduction from the normal usual interest rate.”
Malek thinks that the MOBUCK$ program amount could be raised again within the next few years, depending on the cost of living.
“Which also told the general assembly what a dire need of low-interest credit loan amount was required in Missouri to make these businesses not only successful and sustainable,” he said. “That’s why I think this was taken very seriously.”
MOBUCK$ is still accepting applications until 3 p.m. Thursday.
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