Commerce commits to $100 million small business loans
By St. Louis Public Radio/KCUR
St. Louis, MO. – Commerce Bank announced Tuesday that it will offer $100 million in low interest loans to small businesses as part of a Missouri state program.
The Missouri Linked Deposit Program, managed by state Treasurer Clint Zweifel, generally saves borrowers about 30% through lower interest loans.
Missouri deposits money into a bank, the bank, pays the state less than the going rate for interest, and then loans the money to businesses at a discounted rate.
The state loses some investment income, but State Treasure Clint Zweifel says businesses with fewer than 100 employees get a boost.
"If we can lower the cost of capital for small businesses, so that they can invest in plants, expansion and equipment, and hire employees, we have a better chance to create jobs in our state," Zweifel said.
Commerce Regional President Jack Schreiber says about $40 million in the new loan commitments will be made in the St. Louis area.
"We believe these enhancements will not only help these businesses but provide additional jobs not only in St. Louis but throughout the state," Schreiber said.
The loans are available to any business with up to 99 employees.