Zweifel Announces $3.4 Million Small Business Loan
Loan saves borrower more than $300,000 over five years
For Immediate Release
Monday, November 23, 2009
State Treasurer Clint Zweifel announced today a $3.4 million small business loan had been approved from the Missouri Linked Deposit Program he administers. The loan to Weber Seeds, Inc. of Marshall, Mo., is one of the largest ever issued through the Missouri Linked Deposit Program, and allowed the company to increase jobs by more than 25 percent and expand its customer base.
"The Missouri Linked Deposit Program provides low-interest loans that allow companies to create and retain jobs," Treasurer Zweifel said. "Weber Seeds' use of this loan to reduce its long-term interest cost is a great example of how we are reinvesting in communities and in people."
Weber Seeds has been in the seed cleaning business for more than 20 years, originally cleaning soybeans, wheat and seed corn on a limited retail basis. The Missouri Linked Deposit Program loan was obtained so the company could refinance two loans totaling $3.4 million. The loans were used by the company to build a plant and buy equipment in order to expand into the wholesale business. Over the length of the five-year loan, the company will save more than $300,000.
"The Missouri Linked Deposit Program loan has allowed us to lock in a low-interest fixed-rate loan for five years," said Daniel Weber, President of Weber Seeds. "The lower interest rate reduces our cash outflows, reduces our risk and helps us expand our staff."
The Missouri Linked Deposit Program, which was expanded this past legislative session as part of legislation developed by Treasurer Zweifel called Invest in Missouri that became effective August 28, currently has about $200 million in loans throughout Missouri, and has another $520 million available. The loan program works as a partnership between Treasurer Zweifel and Missouri community lenders. Wood & Huston Bank of Marshall made the Missouri Linked Deposit Program loan available to Weber Seeds. Since January 2009, Treasurer Zweifel has approved more than $42 million in Missouri Linked Deposit Program loans. Borrowers of those loans generally saved about 1.75 percent on the interest rate.
"It is important that all borrowers and lenders know they may be eligible to receive or issue a low-interest loan through the Missouri Linked Deposit Program," Treasurer Zweifel said. "The legislative expansion has greatly increased access to low-cost capital."
About 100 lenders with 175 branches throughout Missouri use the Missouri Linked Deposit Program. An extensive list of participating lenders and program eligibility guidelines are online at www.treasurer.mo.gov/LinkedDeposit.