JEFFERSON CITY, Mo. – State Representative Terry Thompson is advocating for increased funding for the invaluable MOBUCK$ program, which assists local lenders in reducing interest rates for eligible buyers in Missouri.
On Wednesday, December 6, 2023, Thompson filed HB 1803, a bill designed to introduce new provisions that would augment the MOBUCK$ program by $400 million, aiming to counter inflation and stimulate economic growth.
Collaborating with Missouri State Treasurer Vivek Malek, Thompson is pushing for the expansion of the program, which temporarily halted new applications in May due to overwhelming demand approaching the statutory cap of $800 million.
The MOBUCK$ program operates on an annual cycle from October 1 through September 30. In the most recent program year, it achieved a record-setting loan amount of nearly $539 million, bringing the total outstanding loans close to the $800 million cap.
Simultaneously, as additional MOBUCK$ loan capacity became available, Treasurer Malek introduced the Farm Relief Loan Program to aid farmers and ranchers grappling with severe drought. Anticipated disbursements for Farm Relief Loans in the current year are approximately $52.5 million.
Treasurer Malek announced the resumption of MOBUCK$ applications on January 2, 2024, with an available funding of about $125 million. However, without legislative intervention, the demand for applications is expected to surpass the available funding, as was the case in 2023.
MOBUCK$ operates as a linked deposit program administered by the Treasurer’s Office, facilitating institutions in obtaining funds at reduced interest rates. The Treasurer’s Office provides funds to a lender at a discounted market rate, enabling the lender to pass on the savings to the borrower.
Through MOBUCK$, lenders can decrease interest rates by 2-3 percent. The program has engaged over 140 lenders in the state, allowing qualified borrowers to benefit from these savings.
Drawing on his banking background, Thompson has long championed MOBUCK$ as a practical option to support individuals in building their businesses while enjoying cost savings.
Thompson emphasized the proven success of MOBUCK$, stating, “MOBUCK$ is a proven program that helps farmers and small businesses save on their bottom lines by providing a break on loan interest. As costs continue rising, it’s more important than ever to provide relief to our citizens, and ensure that every cent of their hard-earned dollars are given the best possible return on investment in today’s economy.”
For more information on the MOBUCKS Program, Click HERE.
Representative Terry Thompson, a Republican, represents Lafayette and parts of Jackson and Johnson Counties (District 53) in the Missouri House of Representatives. He was elected to his first two-year term in November 2020. For more information, please contact Rep. Thompson at 573-751-1462 or by email at Terry.Thompson@House.Mo.Gov.