States expand low-interest loan programs for farms, businesses and new housing

On the first business day of the new year, Missouri Treasurer Vivek Malek began accepting applications for about $120 million of state-subsidized, low-interest loans to small businesses, farmers and affordable housing developers.

Within six hours, Malek had so many requests for the money that he had to cut off applications.

“The demand is huge, and it is real,” Malek said.

Missouri's situation, though extreme, is not entirely unique. From to to , states have seen surging public interest in little-known programs that use state funds to spur private investment with bargain-priced loans. The programs have taken off after a series of key