Loans for Kansas City businesses hurt by COVID-19: Who’s eligible and how to apply
Kansas City businesses hoping for loans from the city and area civic groups must meet certain requirements, namely that they be “mom and pop” organizations with 20 employees or fewer, Mayor Quinton Lucas said at a news conference Wednesday.
For weeks now, parts of the Kansas City economy have been slowly shutting down. First, large events were called off. Restaurants were restricted to dine-in services. Metrowide stay at home orders emptied normally busy streets.
The spread of the novel coronavirus, or COVID-19, has fundamentally changed daily life in Kansas City at the expense of businesses and their workers. And while the shutdowns are essential for the sake of public health, Lucas said he feels for residents who need a way to care for their families.
So Kansas City and regional civic groups are stepping in with loan funds to tide over small businesses on the brink.
“Part of this public health crisis is making sure we address the public health issue, but it’s also making sure that we establish enough ... good business and social welfare to make sure people can survive through this moment,” Lucas said, calling it “a bold step.”
Kansas City Council members last week approved a $500,000 emergency fund for small businesses as part of the annual budget. On Tuesday, a coalition including the Greater Kansas City Chamber of Commerce and AltCap announced a $5 million fund for the metro. Both funds offer loans with flexible terms and no interest.
In the news conference Wednesday, Lucas fleshed out the details of the fund he proposed last month. Eligible businesses are those that fall in Kansas City boundaries and have fewer than 20 employees or make less than $750,000 in revenue per year. The fund, he said, will offer loans up to $25,000.
The $5 million fund is more flexible. The 20-employee rule still applies, but businesses can make up to $2.5 million in revenue and still qualify. The loans are also larger, capping out at $100,000.
AltCap will process applications for both funds.
(Correction: A previous version of this story gave an incorrect description of the role of KCSourceLink. That organization does not handle the loan program but can help businesses with questions about other resources.)
AltCap President Ruben Alonso III said the organization has received inquiries from more than 200 businesses since the $5 million regional fund was announced Tuesday. Alonso said the organization will approve or deny businesses for loans within two or three days once it has received the full application.
“It’s going to be very challenging to really prioritize those businesses,” Alonso said, “but I think with the requirements that we have in place, the type of business that we’re really hoping to focus on, we think we’re going to get those funds to the businesses that need it most.”
This story was originally published April 1, 2020 at 1:38 PM.
