HB 464 -- LOAN GUARANTEES

CO-SPONSORS:  King, Munzlinger, Myers, Viebrock, Dixon

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Agriculture by a vote of 24 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 Representative King; Agricultural
and Small Business Development Authority; Missouri Farm Credit
Services; Missouri Dairy Association; Missouri Pork Association;
Missouri Farm Bureau; and Missouri Soybean Association.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am