HB557 - AGRICULTURAL ECONOMIC DEVELOPMENT - Leake, Sam
HB557 EXPANDS DUTIES OF THE MISSOURI AGRICULTURAL AND SMALL BUSINESS DEVELOPMENT AUTHORITY.
Sponsor: Leake, Sam (9) Effective Date:00/00/00
CoSponsor:Wiggins, Gary (8) LR Number:1313-01
Last Action: 07/14/97 - Approved by Governor (G)
07/14/97 - Delivered to Secretary of State
SCS HCS HB 557
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
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Available Bill Summaries for HB557
| Truly Agreed | Senate Committee Substitute | Perfected | Committee | Introduced |


Available Bill Text for HB557
| Truly Agreed | Senate Committee Substitute | Perfected | Committee | Introduced |

Available Fiscal Notes for HB557
| Senate Committee Substitute | House Committee Substitute | Introduced |

BILL SUMMARIES

TRULY AGREED

SCS HCS HB 557 -- AGRICULTURAL ECONOMIC DEVELOPMENT

This bill expands the duties of the Agriculture and Small
Business Development Authority to provide assistance to
businesses involved in processing, manufacturing, marketing, or
exporting Missouri's agricultural products by granting partial
loan guarantees.  The Agricultural Product Utilization and Small
Business Development Loan Guarantee Fund is created by the bill
and is to be used for such loan guarantees.  The fund is to
consist of money appropriated to it by the General Assembly,
bequests by the Federal Government, private or other sources,
and investment income on the fund.  The General Assembly may
appropriate up to $2.5 million for the establishment and initial
funding of the fund.  Qualified agricultural businesses may
borrow up to $250,000 by providing a minimum down payment of up
to 10%.  The authority provides a 25% first-loss guarantee, on a
declining principal basis, to local lenders.  Qualified
agricultural businesses receiving such a loan guarantee are to
qualify for the Missouri First Linked Deposit Program, thereby
receiving reduced interest rates on the loan.  The authority may
charge a one-time 1% participation fee on the loan.

The authority may also make grants from the Agricultural Product
Utilization Grant Fund, established by the bill, to qualified
individuals or entities whose projects add value to agricultural
products and aid the local economy.  The fund is to consist of
up to $1.5 million which the General Assembly may appropriate to
the fund, gifts, grants, bequests from the Federal Government,
private or other sources and investment income on the fund.  No
grant can exceed $150,000 and at least 1/3 of all grants made in
a calendar year are to be for $25,000 or less.   Qualifications
for such grants are specified in the bill.  A fee of $200 is to
accompany an application for a grant.

The bill also allows monies loaned to beginning farmers under
the Missouri First Linked Deposit Program to be used for
operating expenses.


PERFECTED

HCS HB 557 -- ECONOMIC  DEVELOPMENT (Leake)

This substitute expands the duties of the Agriculture and Small
Business Development Authority to provide assistance to
businesses involved in processing, manufacturing, marketing, or
exporting Missouri's agricultural products by granting partial
loan guarantees. Qualified agricultural businesses may borrow up
to $250,000 by providing a minimum down payment of up to 10%.
The authority provides a 25% first-loss guarantee, on a
declining principle basis, to local lenders. Qualified
agricultural businesses receiving such a loan guarantee are to
qualify for the Missouri First Linked Deposit Program, thereby
receiving reduced interest rates on the loan. The authority may
charge a one-time 1% participation fee on the loan.

The authority may also make grants from the Agricultural Product
Utilization Grant Fund, established by the bill, to qualified
individuals or entities whose projects add value to agricultural
products and aid the local economy. The Fund is to consist of up
to $1 million which the General Assembly may appropriate to
the    fund, gifts, grants, bequests from federal, private or
other sources and investment income on the fund. Qualification
for such grants are specified in the bill. A fee of $200 is to
accompany an application for a grant.

The substitute also creates the Agricultural Product Utilization
and Business Development Loan Guarantee Fund. The fund is to
consist of money appropriated to it by the General Assembly,
bequests by the Federal Government, private or other sources,
and investment income on the fund. The General Assembly may
appropriate up to $2 million for the establishment and initial
funding of the fund.

The substitute also provides that monies loaned under the
Missouri First Linked Deposit Program to beginning farmers may
be used for operating expenses.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
to $3,000,000 in FY 1998, $0 in FY 1999, & FY 2000.  Estimated
Net Increase to Agricultural Product Utilization and Business
Development Loan Guarantee Fund of $0 to $2,096,090 in FY 1998,
$0 to $100,895 in FY 1999, & $0 to $105,940 in FY 2000.
Estimated Net Effect on Agricultural Product Utilization Grant
Fund Increase of $0 to $525,000 in FY 1998, Cost of $0 to
$498,750 in FY 1999, & Cost of $0 to $26,500 in FY 2000.
Estimated Net Increase to Agricultural Product Utilization
Business Development Loan Program Fund of $0 to $21,420 in FY
1998, $0 to $47,514 in FY 1999, & $0 to $17,339 in FY 2000.


COMMITTEE

HCS HB 557 -- ECONOMIC  DEVELOPMENT

SPONSOR:  Leake

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 23 to 0.

This substitute expands the duties of the Agriculture and Small
Business Development Authority to provide assistance to
businesses involved in processing, manufacturing, marketing, or
exporting Missouri's agricultural products by granting partial
loan guarantees. Qualified agricultural businesses may borrow up
to $250,000 by providing a minimum down payment of up to 10%.
The authority provides a 25% first-loss guarantee, on a
declining principle basis, to local lenders. Qualified
agricultural businesses receiving such a loan guarantee are to
qualify for the Missouri First Linked Deposit Program, thereby
receiving reduced interest rates on the loan. The authority may
charge a one-time 1% participation fee on the loan.

The authority may also make grants to qualified individuals or
entities whose projects add value to agricultural products and
aid the local economy. Qualification for such grants are
specified in the bill.  A fee of $200 is to accompany an
application for a grant.

The substitute also creates the Agricultural Product Utilization
and Business Development Loan Guarantee Fund. The fund is to
consist of money appropriated to it by the General Assembly,
bequests by the Federal Government, private or other sources,
and investment income on the fund. The General Assembly may
appropriate up to $3 million for the establishment and initial
funding of the fund.

Up to $2 million may be used for loan guarantees and the
remaining money may be used for grants.

The substitute also provides that monies loaned under the
Missouri First Linked Deposit Program to beginning farmers may
be used for operating expenses.

FISCAL NOTE:  Transfer Out of General Revenue Fund of $0 to
$3,000,000 for FY 1998.  Estimated Net Effect on Agricultural
Product Utilization and Business Development Loan Guarantee
Fund, Increase of $0 to $2,600,000 for FY 1998; Cost of $0 to
$395,000 for FY 1999; and Increase of $0 to $110,250 for FY
2000.  Estimated Net Increase to Agricultural Product
Utilization  Business Development Loan Program Fund of $0 to
$21,420 for FY 1998; $0 to $54,734 for FY 1999; and $0 to
$19,585 for FY 2000.

PROPONENTS:  Supporters say that this bill would allow
agricultural entities access to financing otherwise not
available to add value to their agricultural products. This
increased business activity will translate into increased
financial opportunities for Missouri farmers participating in
cooperative ventures, new and retained jobs provided by
processing and value-added activities, and strengthening of
rural economies through new agricultural business enterprises.

Testifying for the bill were Representative Leake; Office of the
State Treasurer; Agricultural and Small Business Development
Authority; Missouri Corn Producers Association; Missouri Soybean
Association; and Department of Economic Development.

OPPONENTS: There was no opposition voiced to the committee.

Roland Tackett, Research Analyst


INTRODUCED

HB 557 -- Economic Development

Co-Sponsors:  Leake, Wiggins, Tate

This bill expands the duties of the Agriculture and Small
Business Development Authority to provide assistance to
businesses involved in processing, manufacturing, marketing, or
exporting Missouri's agricultural products by granting partial
loan guarantees. Qualified agricultural businesses may borrow up
to $250,000 by providing a minimum down payment of up to 10%.
The authority provides a 25% first-loss guarantee, on a
declining principle basis, to local lenders. Qualified
agricultural businesses receiving such a loan guarantee are to
qualify for the Missouri First Linked Deposit Program thereby
receiving reduced interest rates on the loan. The authority may
charge a one time, 1% participation fee on the loan.

The authority may also make grants to qualified individuals or
entities whose projects add value to agricultural products and
aid the local economy. Qualification for such grants are
specified in the bill.  A fee of $200 is to accompany an
application for a grant.

The bill also creates the Agricultural Product Utilization and
Business Development Loan Guarantee Fund. The fund is to consist
of money appropriated to it by the General Assembly, bequests by
the Federal Government, private or other sources, and investment
income on the fund. The General Assembly may appropriate up to
$3 million for the establishment and initial funding of the fund.

Up to $2 million may be used for loan guarantees and the
remaining money may be used for grants.


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Last Updated August 11, 1997 at 4:16 pm