JEFFERSON CITY, Mo. (AP) — Missouri lawmakers gave final approval Thursday to significantly expand a low-interest loan program for farmers and small businesses, in a move that reflects strong consumer demand for such government aid amid persistently high borrowing costs. The legislation comes as states have seen surging public interest in programs that use taxpayer funds to spur private investment with bargain-priced loans. Those programs gained steam as the Federal Reserve fought inflation by repeatedly raising its benchmark interest rate, which now stands at a 23-year high of 5.3%. Higher interest rates have made virtually all loans more expensive, whether for farmers purchasing seed or businesses wanting to expand. Under so-called linked-deposit programs, states deposit money in banks at below-market interest rates. Banks then leverage those funds to provide short-term, low-interest loans to particular borrowers, often in agriculture or small business. The programs can save borrowers thousands of dollars by reducing their interest rates by an average of 2-3 percentage points. |
This week: economic growth, unemployment, inflation updateTaylor Swift's The Tortured Poets Department is dismissed as 'flat and cringeUK prime minister pushes for Rwanda deportation bill over objections from unelected upper chamberSouth Africa's ANC loses another court case against rival party led by former president ZumaFormer FAU standout Alijah Martin signs with Florida over Alabama, Arkansas, Michigan and othersParis Hilton puts on a VERY leggy display in pink PVC dress as she shares new collaboration with TanTOWIE star Vas J Morgan cuts a casual figure as he steps out in his own activewear brandAustralian leader criticizes X for failing to remove church violence contentNearly 100 Belarus political prisoners have severe medical problems, rights group saysHarmonious picture of human and nature in China's coastal city Xiamen