Linked Deposit Low Interest Program

The state treasurer will use a small portion of the state's investment portfolio to deposit with Alabama banks or savings and loan associations, and "link" these deposits to individual loans made to eligible small businesses or farmers. The financial institution will pay up to a 2% lower rate on the state deposits and must charge a corresponding lower rate to the borrower.

Please note that this program is currently suspended because of the low interest rate environment. The state treasury website will announce if and when it is reactivated.

ADVANTAGES

Lower interest rate.

USE OF FUNDS

Land, buildings and equipment. Repairs and equipment. Repairs and renovations. Rent, utilities, insurance, and taxes. Legal and accounting fees. Wages and inventory.

SOURCE OF FUNDS

Alabama banks or savings and loan associations.

INTEREST RATES

Up to 2% lower rate than conventional.

MATURITY TERM

LIMITS

The lower rate would apply only to the first two years of the loan.

ELIGIBILITY

INELIGIBLE USES

Loans which have no positive impact on either existing or potential employment opportunities.

JOB CREATION