The credit crisis has reminded us of a thing or two about good lending practices: The best loans are made when the borrower and lender know each other, and when they both have a stake in the venture succeeding.

Small businesses and a healthy banking system will be critical in recovering from the recession, but the current economic turmoil has threatened their stability. A proposal before the Missouri General Assembly addresses these concerns and deserves to be approved.

The Small Business Linked Deposit Program is an existing program that enables banks to lend to small business at an interest rate with a 2 percent to 3 percent discount. Regulatory obstacles, however, have caused the program to be utilized at about one-third of its $750 million capacity.

The Invest in Missouri reforms from Missouri Treasurer Clint Zweifel would expand the program from businesses with fewer than 25 employees to those with up to 100 full-time workers; allow farmers who have more than 60 percent equity in their operation to participate; and speed up loan approvals by weeks.

Other portions of Mr. Zweifel's plan would benefit manufacturers who create jobs, alternative energy producers and small communities investing in infrastructure and public safety.

Why Invest in Missouri is a good bet:

1. It doesn't cost taxpayers anything.

2. It makes capital more accessible to small business and farmers, who form the backbone of the state's economy.

3. It strengthens the bond between community banks and local businesses, the most secure lending relationship.

4. It is a linked program where banks only have access to the money once a small business is lined up to receive the loan.

The Invest in Missouri program also would allow the state to receive a higher return on its invested money. Overall, this is one sensible proposal to address a situation that demands rational and creative thinking.