The MOBUCK$ program offers 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 point where interest rates are going up, and I believe they’re going to keep going up,” Missouri Treasurer Scott Fitzpatrick said. “If we end up in a recession of some kind, or if we end up on a bumpy road economically. It is important that businesses have access to affordable capital.
MOBUCK$ is a linked deposit program that helps institutions obtain funds at lower interest rates. This means that the Missouri Treasurer’s Office will provide money to a lender to fund a loan. The money is provided to the lender at a market discount rate. Then the lender passes on the savings to the borrower.
“The bigger the loan, the bigger the savings will be,” Fitzpatrick said. “But not all loans are, you know, million dollars, are they? It could be anything, you buy a vehicle and you need to finance a vehicle or a small piece of equipment. It could be up to building a brand new manufacturing plant, or it could be a loan for a farmer, or it could be a loan against livestock, whatever that need is, the program can meet that.
Through this program, lenders can reduce the interest rate by 2-3%. The program was previously known as ____. The Treasurer’s Office has partnered with more than 140 state lenders to provide these loans to qualified borrowers. Terry Harden of Terry’s Towing received a MOBUCK$ loan and was able to pay off the bill sooner thanks to the lower interest rate.
“If you want to save money, it is better to take out the MOBUCK$ loan. More money in your pocket is less money than someone else,” Harden said. “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 on HERE.
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