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SB388C-LOAN GUARANTEES
Summary of the House Committee Version of the Bill

SB 388 -- LOAN GUARANTEES

SPONSOR:  Klindt (King)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Agriculture by a vote of 19 to 0.

Currently, the Missouri Agricultural and Small Business
Development Authority issues certificates of guaranty covering a
first loan guarantee up to 25% of a Single-Purpose Animal
Facility Loan.  This bill increases the guarantee to up to 50% of
a loan.

The bill also decreases from 40% to 20% the immediate redemption
amount of the outstanding loans guaranteed by way of the
Single-Purpose Animal Facility Loan Guarantee Fund.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that young people wanting to enter
livestock production find it difficult to obtain financing for
livestock facilities.  The bill reduces the risk to banks making
approved loans to both new producers and established producers
wishing to upgrade or expand.

Testifying for the bill were Senator Klindt; Missouri Farm Credit
Services; and Missouri Agricultural and Small Business
Development Authority.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

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Last Updated July 25, 2003 at 10:13 am