West Community Credit Union has partnered with the Missouri Linked Deposit Program, a state plan that aims to provide low-interest loans for job creation and retention.
Through this program, qualified lenders are able to reduce the interest rate on certain loans that borrowers can use to improve their businesses by between 2% to 3%. The $126 million West Community in O'Fallon, Mo. was approved as a qualified lender earlier this year and is the first credit union in St. Louis to qualify as designated lender, according to the CU.
"We're very excited about this new lending opportunity," said Jason Peach, chief financial officer at West Community. "Though the outlook for 2011 continues to be somewhat uncertain for businesses, we view the Missouri Linked Deposit Program as a bright spot during this otherwise bleak economic period."
The program's eligibility guidelines were expanded, making low-interest loans available to more borrowers including small businesses creating jobs, alternative energy producers and consumers, agriculture operations and local governments. This expansion also opened the door for credit unions across the state to become more active in the program, according to West Community.