HCS HB 1238 -- AGRICULTURAL BUSINESS DEVELOPMENT LOAN GUARANTY

SPONSOR:  Myers (Munzlinger)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 24 to 0 with 2 present.

Currently, the Missouri Agricultural and Small Business
Development Authority issues certificates of guaranty covering a
first loss guarantee up to 25% of an Agricultural Business
Development Loan, up to $250,000.  This substitute increases the
guarantee to up to 50% of a loan.

The substitute also deceases from 40% to 20% the immediate
redemption amount of the outstanding loans guaranteed by way of
the Agricultural Product Utilization and Business Development
Loan Guarantee Fund.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill reduces a bank's
exposure to loss and allows greater utilization of the program by
young farmers lacking the resources to fully capitalize their
loans.

Testifying for the bill were Representative Munzlinger;
Department of Agriculture; Agricultural and Small Business
Development Authority; Missouri Corn Growers Association;
Missouri Soybean Association; and Missouri Farm Bureau.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am