Gov. Scott Walker said his flagship economic development agency has been a success even as it faces serious questions about its practices and Walker himself is calling for an overhaul.

Walker announced on Friday that he wanted the Wisconsin Economic Development Corporation to transition away from giving loans to businesses. That's one of the staples of WEDC, but audits found the agency hasn't forced businesses to live up to the terms of loans.

Walker told reporters at the state Republican convention in La Crosse on Saturday that other duties of WEDC would continue, but when it came to loans, businesses could look to banks and credit unions instead.

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"There are viable alternatives, and this allows WEDC to be focused on working on promotions and providing incentives that are based across the board, not just on specific loans," the governor said.

Walker spoke the day before the Wisconsin State Journal published a report showing WEDC gave a $500,000 loan to a failing company right after the company's owner gave $10,000 to Walker's campaign.