JEFFERSON CITY — Gov. Jay Nixon has won approval for a $2 million loan program for small businesses.
The Missouri Development Finance Board voted Tuesday to set aside the money and begin taking applications for the loans. The new program is envisioned as a way to award up to $25,000 a piece to companies with five or fewer employees.
The finance board is led by Nixon's Department of Economic Development director, Linda Martinez. She said small businesses are having difficulty getting loans from banks and are begging to participate in the state program.
The program was opposed Tuesday by Lt. Gov. Peter Kinder, who compared it to passing out cash on the street. Kinder is concerned that many businesses will default on the loans.