Springfield Business Journal_2019-03-25

Hilton Garden Inn 4155 S. Nature Center Way $22 per person $150 per table of 8 Includes breakfast PURCHASE TICKETS AT SBJ.net/12People LIVE INTERVIEW WITH EDITOR ERIC OLSON Q&A: APRIL 16 | 7:30-9 AM SPONSORED BY Owner, Millsap Farms LLC WHY YOU NEED TO KNOW CURTIS MILLSAP: A leader in the locally sourced urban food movement, he’s building an agritourism model at his farm. #12People C U R T I S M I L L S A P T H E CO N S U M M AT E FA R M E R Liaison: Huber & Associates 38 · SBJ.NET MARCH 25-31, 2019 treasurer’s office partners with qualified- lending institutions to issue low-interest loans to small businesses, agricultural oper- ations and local goverments. Low-interest deposit types are agriculture, alternative energy, job enhancement, local govern- ments, multifamily housing and small busi- ness, according to the treasurer’s website. In- terest rates through the program are usually in the 2-3 percent range. When the treasurer’s office began studying the loans comprising the current $600 mil- lion sum, Fitzpatrick said 95 percent of those approved were less than $2 million, but several were also in the $10 million range. That ate up a lot of cap space, he said, adding the program is capped statutorily at $720 million of total deposits. “I think it would have capped out in the next three to six months,” Fitzpatrick said. Fitzpatrick’s changes, announced Feb. 28, affect all outstanding applications. Here are the key reforms: • linked deposits will be no larger than $1 million, per loan request; • linked deposits will no longer be ap- proved for refinanc- ing existing bank loans helping focus available funds on new econom- ic development proj- ects, the original intent of the program; and • individual financial institution participa- tion will be limited to 20 percent of the statutory cap. Additionally, Fitzpatrick said the state lawmakers are considering legislation to raise the statutory cap to $800 million. House Bill 1029, sponsored by Rep. Jack Bondon, R-Belton, was approved by the legislative oversight committee, and it’s ex- pected to appear for debate on the House floor soon, Fitzpatrick said. Also, Fitzpat- rick testified March 13 before the Senate in- surance and banking committee in support of the sister Senate Bill 439, sponsored by Sen. Justin Brown, R-Rolla. Fitzpatrick’s program changes come a year after Schmitt put in place his own re- forms, which emphasized cutting red tape, expanding access and modernizing the sys- tem. According to a news release, yearly certifications were eliminated to reduce pa- perwork from borrowers, eligibility criteria for agricultural loans were expanded and the application process was streamlined. In southwest Missouri, Mid-Missouri Bank, Hawthorn Bank and OakStar Bank are the top three lending institutions for the Missouri FIRST pro- gram, according to the state treasurer’s office. Active deposit amounts at Mid-Missouri to- tal $28.4 million, fol- lowed by $24.3 million at Hawthorn and $16.7 million at OakStar. In 2018, Mid-Missouri provided 23 loans through the program, said Andrew Moore, marketing director. The agriculture, com- mercial and small-business loans totaled just over $9 million and averaged $400,000 in size. “We wish it was a better-known pro- gram,” Moore said, noting the bank has worked with the Missouri linked deposit program since 2011. He said bank officials support Fitzpat- rick’s changes, as they’re intended to keep funds available so the program can con- tinue. The loans are is- sued by the treasurer’s office for a one-year term, which can be renewed annually for five years. According to the state treasurer’s website, loan rates are based on a certification by the state lender of the normal lending rate that would be of- fered to the linked-deposit applicant. The lending rate is multiplied by 70 percent to determine the new loan-ceiling rate for the applicant. The program has undergone several name changes in its history, which stretch- es back to the 1980s, including MO BUCKS and BIG Missouri, according to the state treasurer’s website. “I feel like with the changes we made most recently, we’ll most certainly get through 2019 without any issues,” Fitzpat- rick said, adding the state should be in good shape for 2020 as well. Loans roll off each year, freeing up cap space. He said that should clear around $30 million in 2019. Deposits: Single loans capped at $1M Continued from page 3 $720M Current cap of total deposits by state statute for Missouri FIRST $1M Maximum linked deposit amount now allowed by program Simmons Bank to Gerald I. and Norma J. Spaine; 136,856; L2, Fox Grape, third addition. Simmons Bank to J. Karen Mullis Trust; 225,000; L2, Fox Grape, fifth addition. Simmons Bank to South813 LLC; 140,000; L14 and 15, Campbell addition. Simmons Bank to Owen Hannah and Marcia A. Hatfield; 126,172; L24, Rosewood ad- dition. Southern Bank to Mark E. and Valia M. Gardner; 500,000; L20, San Poppi at Millwood, Phase III. Springfield First Community Bank to Beau D. Mantle; 147,634; L48, Whispering Meadows, Phase II. Springfield First Community Bank to Arthur J. and Lisa C. Bigler; 142,000; L5, Natural Bridge Estates, Unit 3. Springfield First Community Bank to Patricia L. Johnson Trust; 232,000; sec. 21, twp. 29, range 20, SW. State Bank of Southwest Missouri to Ches- apeake Land Co. LLC; 112,289; L6, E.H. Britain’s addition. State Bank of Southwest Missouri to BRDFRD Properties LLC; 160,000; L7-9, Brentwood Terrace, second addition. Stephen R. and Pamela S. Young to Young Family Investments LLC; 900,000; sec. 32, twp. 29, range 21, NE. Steward Mortgage Funding LLC to Brinkley Family Trust; 155,500; sec. 5, twp. 29, range 21, NE. Synergy One Lending Inc. to David E. and Peggy Pickett; 158,049; L23, Glendale Hills. U.S. Bank to Chantilly Park LLC; 882,002; L5-8, Fremont Park Estates, first ad- dition. U.S. Bank to Vincent Hill LLC; 1,234,499; L38-41, Kanan, third addition. U.S. Bank to Layven Investments LLC; 1,300,000; L1 and 2, Wilson Creek Mar- ketplace lot reconfiguration. Veterans United Home Loans to Camilla Monroe; 191,500; L13, Fox Creek. Veterans United Home Loans to David W. Procell Jr.; 239,000; L53, Oak Knolls. ON THE RECORD NEWS DEEDS OF TRUST, from page 34