Linked Deposit Programs
The Oklahoma State Treasurer administers the Linked Deposit Loan Programs that provide low-interest certificates of deposit to financial institutions to provide lending capital to eligible family farmers, small businesses and housing developers.
When market conditions allow, successful applicants for Linked Deposit programs receive private loans through local financial institutions at a reduced interest rate. The certificates of deposit bear interest rates of up to three percent below the standard rate. In effect, these savings are "passed on" to the borrowers participating in the program.
Please note: The low-interest aspect of the link programs is made possible when standard rates paid on certificates of deposit are high enough to permit a rate savings by discounting the rate paid on linked deposit certificates. At this time, standard rates are too low to permit rate savings.
Because the participating financial institutions must fully collateralize the certificates of deposit received from the Treasurer, there is no risk of loss of public funds, even in the event the borrower defaults on his or her linked deposit loan.
Up to $225 million is available for Linked Deposits. Several thousand jobs have been created or saved and hundreds of family farms remain in operation due to the Linked Deposit Program.
The Oklahoma Agricultural Linked Deposit Program helps Oklahoma farmers and ranchers. Linked deposit loans are available to at-risk farm or ranch operations or to alternative agricultural products operations who are residents of the State of Oklahoma and whose business operation is located in this state.
The Oklahoma Small Business Linked Deposit Program helps create and save jobs with Oklahoma small businesses. The Linked Deposit Program can be used for a broad range of business and types of industry.
The Rural and Affordable Housing Linked Deposit Program allows for private, low-interest loans of up to $2 million each to qualified housing developers to construct single-family and multi-family housing in rural Oklahoma and in qualifying areas of urban centers.
For more information about the Linked Deposit Loan Programs, please contact:
Hyuk "Phyllis" Chan