JEFFERSON CITY, Mo. — Doubts that the Kansas City Chiefs’ summer training camp in St. Joseph could fold because of a small business loan program dissolved Tuesday, but the deal has yet to maneuver around another brick wall.

The Missouri Development Finance Board on Tuesday authorized Democratic Gov. Jay Nixon’s proposal to establish a $2 million pool of low-interest loans for small businesses in a nearly unanimous vote.

Lt. Gov. Peter Kinder, a Republican who offered the only “no,” previously raised concerns that the pool could compromise the availability of funds for the Chiefs’ deal if the board approved the program before negotiations were complete.

The board in December approved $25 million in tax credits for the Chiefs to make improvements to Arrowhead Stadium. Contingent on the board’s approval was a pledge from the Chiefs to move its training camp from Wisconsin to St. Joseph and to donate $10 million to Missouri Western State University for a practice stadium.

A subsequent financial review showed the board has about $28 million.

“We’re comfortable the funding source is there,” Executive Director Robert Miserez said.

That doesn’t put the training camp in the clear, however.

“We had some setbacks, but hopefully we’ll get them to move forward,” Economic Development Director Linda Martinez said of pending projects.

Three of former Gov. Matt Blunt’s directors signed off on the MDFB loan contract with the Chiefs in early January, theoretically making it final in the last days of the Republican administration. But as negotiations over $2 million in fees and a camp contract between Western and the Chiefs neared a close this month, Department of Economic Development officials said they wouldn’t release the tax credits unless the team committed to 10 years at Western.

The MDFB contract states the Chiefs will practice at Western for five years, beginning in 2010, plus it includes five one-year renewable options, which is in line with the team’s 2008 letter of intent. However, economic development officials point to board minutes and other documents that state the Chiefs committed to a full 10 years.

“We’re looking forward to enforcing the agreement the board approved in December,” Ms. Martinez told the News-Press.

Regardless, Chiefs and Western leaders say they’re continuing to work out a five-plus-five deal. And Ms. Martinez said the Chiefs’ attorneys have yet to contact her on the matter, potentially putting the deal at a standstill with construction at Western scheduled to start in June.

Mr. Kinder, who previously chaired the board until March when Mr. Nixon gave the position to Ms. Martinez, said staff had laid to rest concerns about the board’s financial position to offer the program, but he still criticized the scale of the small business loans, which would be awarded in amounts of up to $25,000.

At most, that means 80 businesses could reap the loan’s maximum from a $2 million effort. He also contended the high-risk loans most likely wouldn’t be paid back.

“I think we might as well go out onto High Street and start handing out $1,000 bills to passers-by,” he said of a Jefferson City street.

Board member Danette Proctor said she’d received feedback that $25,000 wasn’t a large enough of an amount to make a difference.

“You can’t even buy a pickup,” she said.

Ms. Martinez countered that the department had received hundreds of inquiries. Brian May, a new board member, said a need exists because banks are rejecting small businesses for similar loans.

Locally, Mo-Kan Development Inc. in St. Joseph has requested $150,000 for loans in Andrew, Buchanan, Clinton and DeKalb counties. Also, Green Hills Rural Development Inc. has requested $200,000 for Harrison, Daviess, Caldwell, Livingston, Grundy and other counties.

“I would think this is a very small amount and the risk might be worth taking,” said Marie Carmichael, a new member.

Alyson E. Raletz can be reached at alysonraletz@npgco.com.