More News · May 6, 2020 0

Missouri Senator Justin Brown’s Bill to Expand Small Business Lending Goes to Governor

JEFFERSON CITY, MO (STL.News) Missouri businesses will have increased access to capital now that Senate Bill 599, legislation sponsored by State Senator Justin Brown, R-Rolla, has been truly agreed and finally passed.  The measure, which expands the Missouri FIRST linked deposit program, now goes to the governor for his consideration.

Senator Brown’s legislation makes several changes to the state’s linked deposit program.  Senate Bill 599 raises the ceiling on how much state money can be devoted to the Missouri FIRST program, limits how much of the money can be deposited at any one bank and increases the percentage of loans that can be allocated to small business start-ups and expansion.

“At a time when Missouri businesses are struggling to get back on their feet, this program provides an additional source of low-cost capital to help fuel our state’s economic recovery,” Sen. Brown said.  “The linked deposit program has proven to be an innovative and efficient way to leverage state money to benefit small businesses and farms.  I appreciate the opportunity to work with the state treasurer to improve this program and expand financing opportunities for Missourians.”

Senator Brown’s legislation was amended in the final days of the legislative session to add consumer protections from predatory pay day loan lenders and extend provisions of the Seniors Savings Protection Act.  The bill also allows the Federal Reserve to provide coronavirus relief money to the state, which will to be distributed to county and municipal governments.

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