SB 1280 - The Missouri Agricultural and Small Business Development Authority (MASBDA) shall develop and implement a Livestock Feed and Crop Input Loan Guarantee Program. The program shall provide loan guarantees for up to 50% of the amount of a loan on a declining principal basis, not to exceed $40,000 per individual loan. The loan guarantee program` shall make such payment to eligible lenders in the event of loan default by recipients of loans given for the purpose of purchasing or growing feed for livestock production.
MASBDA shall charge a one-time $50 fee for each guaranteed loan and may charge a fee up to 1% per year on the outstanding principal of any guaranteed loan. These fees shall be used to administer the program.
The act limits the total amount of outstanding loans that may be guaranteed by MASBDA to whatever amount is deemed to allow 20% of such loan guarantees to be immediately redeemed at any time.
The act creates the Livestock Feed and Crop Input Loan Guarantee Fund, which shall be used by MASBDA to administer the loan guarantee program. Beginning in fiscal year 2009, up to $4 million may be appropriated to the fund.
In developing rules regarding eligibility for the loan guarantee program, MASBDA shall take into consideration: an individual's ability to repay a loan, general economic conditions in the potential loan recipient's area, the farm operation's prospect of success, and any other factors deemed relevant.
MASBDA may institute action to recover any amount due the state under the program.