6 The Kansas Economic Recovery Loan Deposit Program became law in April 2021 as part of SB 15, the Kansas Bankers Association’s push for the Kansas version of Enhancing Credit Opportunities in Rural America (ECORA). The program provides $60 million in idle state funds available for Kansas banks for the purpose of lowinterest loans to small commercial or agricultural businesses in Kansas. These idle state funds are under the control of the Office of the State Treasurer and the Pooled Money Investment Board (PMIB). Right now, there is $59 million available and ready to be deployed. Leonard Wolfe, President and Chairman of United Bank & Trust in Marysville, would encourage Kansas bankers to get involved in the program says, “United Bank & Trust enrolled in this program for the benefit of our community and bank customers. Right now, with interest rates being low and liquidity high, we are not experiencing high demand but fully anticipate more requests in the future as the interest rate environment shifts. Our customers will need it, and we know it works.” The availability of low-cost credit is vitally important to Kansas businesses, including farmers and ranchers, as shuttered storefronts, a disrupted energy sector, and a slow supply chain have caused a ripple effect that will negatively impact the cash flows of agricultural operators and small businesses for the foreseeable future. The Kansas Economic Recovery Loan Program will promote business growth, stimulate job creation, and incentivize financial institutions to extend credit to small business borrowers. Surrounding states, such as Missouri, Oklahoma and Iowa, have similar programs currently infusing hundreds of millions of dollars into businesses in their respective states. Kathy Schwerdtfager, EVP/Chief Credit Officer at The Bank of Tescott, sees this program as another way to help your customers and stay competitive, says, “We are excited to partner with the state to be able to offer the program to the small commercial or ag businesses within our communities. We have had a good history of working with the State Treasurer’s office with the Kansas Agricultural Loan Deposit Program and saw this as an opportunity to have another “tool in our toolbox” to assist borrowers in the markets we serve. With Rates on the Rise, New Loan Deposit Program Could Benefit Your Customers By Kelly VanZwoll, JD, AVP-Staff Attorney and Government Relations, KBA
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