State would earn less interest to spur loans
(AP) – Taking less money on some state investments could help spur greater returns if banks in exchange agree to make loans to small businesses, State Treasurer Kate Marshall said Wednesday.
Marshall testified on SB64, a bill she is sponsoring that would authorize her office to negotiate with banks to pay Nevada less in interest payments on CDs in exchange for making the funds available to qualified businesses.
Marshall says the state would reap more than its lost interest through increased sales and property taxes those businesses would generate.
A similar bill passed by lawmakers in 2009 was vetoed by Gov. Jim Gibbons.
No action was taken on the bill, and some critics and lawmakers questioned a provision that would give preferences to business owned by minorities, women, veterans and certain industries.