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

By DAVID A. LIEB
Associated Press

JEFFERSON CITY, Mo. (AP) — States are seeing increased demand for their cash amid high interest rates. State treasurers say they have seen a significant increase in applications for little-known programs that use state funds to spur private investment with bargain-priced loans. Under the programs, states deposit money in banks at below-market interest rates. Those banks then leverage the funds to make low-interest loans. The loan programs typically target small businesses, farmers or developers of affordable housing. Not every state has such a program. But many who do say participation began rising after the Federal Reserve approved a series of interest rate hikes.