Kansas treasurer would use state deposits to support eligible loans

The bill would authorize the state treasurer to place state money with participating lenders for loans to eligible borrowers. Eligible borrowers include people or entities involved in farming; builders of qualifying homes or nonprofit adult care homes; and Kansas businesses with no more than 200 full-time employees. Wholesale natural gas customers may qualify for costs tied to the February 2021 extreme winter weather event. The treasurer could place deposits totaling up to 5% of the state investment portfolio; the pooled money investment board must approve each additional deposit above that limit. Participating banks, credit unions, and farm credit institutions would review applications using their usual credit standards. Lenders and the treasurer could reject applications or loan packages. The deposit rate would be 2 percentage points below the market rate, with a 0.25% minimum. Borrower rates could be no more than 3 percentage points above the deposit rate. The state would not cover borrower defaults. The bill says the program would take effect after publication in the statute book; it gives no separate program start date.