COVID -19 Resources

***City of Augusta Covid-19 Business Financial Assistance Program***

The City of Augusta is one of only thirty-seven communities in the State of Kansas with a CDBG revolving loan program. Typically, these funds are utilized to provide loans to industrial, manufacturing, and warehousing businesses to create new jobs. In light of the coronavirus pandemic and response actions taken by our state government to curb the spread by effectively closing many brick and mortar businesses, the State of Kansas and its cities are exploring all avenues to help small businesses survive these indefinite shutdowns.

 

The City of Augusta is creating a new program that will be available within the next week to provide financial assistance to small businesses hurt by these shutdowns. The city has $438,000 in funds available for loans and/or grants to cover working capital costs (i.e. salaries and wages, purchase of inventory, utilities, rent, insurance payments, etc.). Businesses will be required to complete a short application to receive funding, but there will be no financial statements, business plans, or loan collateral required of our local businesses. This process will move quickly and funding will be released within several days of application approval.

 

A more formal announcement with application instructions for this new program will be made available early next week, so please help spread the word to our local Augusta businesses instructing them to watch the city’s website and Facebook page for updates.

****CURRENTLY OUT OF FUNDS BUT CAN STILL APPLY****

Kansas Governor Laura Kelly has established the Hospitality Industry Relief Emergency (HIRE) Fund to provide bridge loans for Kansas’ hospitality sector in response to the COVID-19 crisis. The Kansas Department of Commerce and NetWork Kansas will administer the loan program. 

Details:

Through the HIRE fund, eligible businesses in Kansas will be able to apply for a one-time loan of up to $20 thousand at 0% interest for a period of 36 months. There will be no principal or interest payments for the first four months.

Examples of hospitality businesses include:

·     Restaurants

·     Bars

·     Lodging facilities (but not Airbnb)

·     Conference centers

·     Event centers

Other hospitality businesses will be considered and may be approved on a case-by-case basis.

Use of funds

These funds can be used as working capital for business expenses including, but not limited to:

·     Commercial loan payments

·     Commercial lease payments

·     Utility bills

·     Payroll

·     Accounts payable

·     Inventory

Funds will be strategically distributed across the state to maximize relief for all hospitality sectors across Kansas and focus on the areas most affected.

 

Distribution will be allocated as follows:

·     $2 million to businesses in the KC Metro area (Counties of Douglas, Johnson, Wyandotte and Shawnee)

·     $1 million to businesses in Sedgwick County

·     $2 million to businesses located in the rest of the state

In order to be eligible, businesses must:

·     Be an existing for-profit business located in Kansas

·   Registered as an LLC, sole proprietorship, S Corp, C Corp or limited partnership

·     Must have fewer than 100 employees

·   Must have no outstanding state tax obligations

·     Be willing to submit a personal guaranty of repayment from the owners of the business

 

Application process

·   NetWork Kansas’ Referral Center will process loan applications

·     Decisions on submitted applications will be made within 72 hours of application receipt, seven days a week 

·     Funds will be transferred within 48 hours of approval

 

For more information or to apply, please visit: 

www.kansascommerce.gov/hirefund