Mo. Small Business Loan Program Takes First Step

Martinez was presiding over her first meeting Tuesday as chairwoman of the finance board.

Republican Lt. Gov. Peter Kinder had led the board under former Republican Gov. Matt Blunt. But Nixon, a Democrat, named Martinez to replace Kinder as chairman earlier this month. Kinder remains a member of the board.

The state finance board gets part of its revenues by charging a 4 percent fee to its tax credit recipients. But Kinder said Tuesday those fee revenues may not be a sure thing.

For example, Kinder said, troubles have arisen with a previously approved plan to provide $25 million in tax credits to the Kansas City Chiefs for the renovation of Arrowhead Stadium and construction of an indoor Chiefs training facility at Missouri Western State University in St. Joseph.

"I raise the question about the availability of funds to get into the loan business" for small employers, Kinder said.

Finance board member L.B. Eckelkamp, a banker from Washington, Mo., estimated that more than half of the loan recipients may default because of the risky nature of small startup businesses.