Governor Laura Kelly announces disaster assistance for Kansas businesses and discusses banks, unemployment

Governor Laura Kelly was joined today by David Toland, Secretary of Commerce; Delía García, Secretary of Labor; David Herndon, State Bank Commissioner; and others to discuss what the Kelly Administration is doing to help mitigate the potential impact of COVID-19, the novel coronavirus, on the Kansas economy.

U.S. Small Business Administration Disaster Assistance Loans

The Governor first announced that under the state’s disaster declaration she issued on March 12^th, Kansas has applied for, and expects to receive, disaster assistance loans from the U.S. Small Business Administration (SBA) to supplement small businesses disrupted by the economic fallbacks of COVID-19.

“As Kansans practice social distancing, our restaurants, bars and other event centers will see a decrease in patrons. These loans can be used to help keep Kansas small businesses afloat when they can’t obtain credit elsewhere,” Kelly said. “During this turbulent time, our affected small business owners need support.”

Through the SBA, loans of up to $2 million would be made available to Kansas small businesses in need of assistance. The disaster declaration extends to all 105 Kansas counties, making low-interest federal disaster loans for working capital available for Kansas small businesses across the state.

“SBA’s disaster loans are a powerful tool to help our state’s small businesses weather this temporary storm,” Toland said. “The Department of Commerce is grateful for the SBA’s quick action working to make these resources available and for their commitment to keeping Kansas businesses strong.”

Once approved, Kansas small businesses can begin applying for disaster loan assistance through the SBA at https://disasterloan.sba.gov/ela. SBA loans may be used to pay fixed debts, payroll, accounts payable and other bills. The interest rate is 3.75 percent for small businesses and 2.75 percent for private non-profit organizations.

Hospitality Industry Relief Emergency (HIRE) Fund

The Governor also announced during Friday’s press conference that her administration has allocated $5 million of state funds to establish the Hospitality Industry Relief Emergency (HIRE) Fund to provide short-term, zero-interest loans for Kansas’ hospitality sector during the pandemic.

“In an effort to make sure all Kansans come through these difficulties together, we are providing much-needed support to businesses dealing with the earliest impacts of this public health crisis,” Kelly said. “There are more than 10,000 hotels, restaurants, bars, event centers and other hospitality establishments in need of our support right now, and we’re doing everything we can see them through this severe, but temporary, downturn.”

The HIRE Fund offers loans up to $20,000 at 0 percent interest for a term of three years to hospitality businesses with fewer than 100 employees.

“The hospitality industry is experiencing some of the most immediate impacts of the COVID-19 crisis with businesses being closed to the public all across Kansas,” Toland said. “HIRE Fund loans are available to help these businesses meet working capital commitments, such as payroll, utilities, commercial loan payments, inventory expenses and more.”

Loan decisions will made within 72 hours of the time an application is submitted, and businesses will receive funds within 48 hours (or the next business day) of an application being approved. The program is administered by NetWork Kansas, a non-profit with a system of small business loan underwriters across 64 Kansas counties.

For more information on the Hospitality Industry Relief Emergency fund, visit kansascommerce.gov/HIREfund.

Kansas Department of Labor Updates

García spoke about her agency’s role in supporting Kansans during the current health and economic crisis.

“We are doing everything we can to support Kansas workers and employers,” García said. “As we navigate these unprecedented times, know the Kansas Department of Labor is here for you – and we are ready to support our fellow Kansans.”

To illustrate the gravity of the situation, García said that last week the department received 1,296 unemployment claims. This week, the department has received 11,355 claims – an increase of over 10,000.

 “We are in uncharted waters right now, which underscores the importance of us working together,” García said. “To serve Kansas workers and employers as efficiently as possible, we are encouraging them to utilize our website — www.dol.ks.gov — as much as possible.”

Employers and workers can apply for benefits, file by spreadsheet, find answers to frequently asked questions and utilize additional resources online.

Office of the State Bank Commissioner Updates

Herndon shared updates from his office, dispelled false rumors surrounding the impact of COVID-19 on Kansas banks and discussed how the Kansas banking industry is stepping up to help people across the state.

The Office of the State Bank Commissioner regulates banks chartered by Kansas and non-bank consumer credit providers licensed to do business in Kansas. It conducts safety and soundness examinations, regulatory compliance examinations and information technology/cybersecurity exams as mandated by federal and state laws and regulations.

“Kansas banks are safe and they are sound,” Herndon said. “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933. I urge Kansans to be safe, protect yourself and your funds by leaving them in your account.”

Herndon said bankers across the state are assisting Kansans by making new loans, amending terms and conditions to existing loans and otherwise working with borrowers adversely impacted by the pandemic.

“Kansas bankers and the Kansas banking industry is stepping up to help through this pandemic, and they are here to assist in any way they can for the duration,” Herndon said.

The Governor also thanked Kansas medical professionals, members of the press corps, grocery store and food industry workers, custodial staff, firefighters, police officers, state and local emergency managers, and the 21 state-active duty National guardsmen & women for their hard work.

“I know many of you are working long hours away from your family and that is tough so please know that Kansans all across the state appreciate you and all you are doing,” Kelly said.

Topeka, Kan. – The Kansas Department of Commerce announced today that applications are now being accepted for the Community Service Tax Credit Program (CSP).

CSP assists private nonprofit organizations and public health care entities in undertaking major capital campaigns for projects involving:

• Children and family services
• Non-governmental crime prevention
• Youth apprenticeship
• Youth technical training
• Health care

Under this program, the state authorizes specially selected nonprofit organizations to offer tax credits to donors making contributions toward approved projects.

This year, CSP has earmarked $1 million for childcare and early childhood development projects for services to those under the age of five. The program will award $4.1 million in total tax credits.

“Community service tax credits are a powerful tool to support the quality of life in communities large and small,” Secretary of Commerce Toland said. “We are particularly pleased that by aligning CSP with Governor Kelly’s early childhood agenda, we can support Kansas non-profits who provide services to kids whose parents are needed in the workforce.”

The proposed projects should be unique or one-time in nature and create a lasting value for charitable organizations (e.g., capital campaign, major equipment purchase, major renovation, capacity building, etc.). Eligible projects must also result in the organization becoming more self-sufficient.

Applicants may request up to $250,000 in tax credits. Applicant organizations in rural areas (less than 15,000 population) are eligible for a 70 percent credit. Applicant organizations in non-rural areas are eligible for a 50 percent credit.

Applications for the Community Service Tax Credit Program will be accepted through May 31, 2020. Awards will be announced July 15.

More information on the program and application process may be found online at www.kansascommerce.gov/csp.

Governor signs bipartisan bills to help Kansans during COVID-19 Pandemic

Extends unemployment eligibility, education disaster allowances, judicial disaster allowances

Governor Laura Kelly signed three bipartisan bills into law today in response to the COVID-19 pandemic.

“I want to thank the Legislature for working together to fast track this critical legislation,” Kelly said. “As COVID-19 continues to spread, our response is constantly evolving. We must have a plan for Kansans who are facing so much uncertainty. The bills will help our state navigate these difficult circumstances. We will get through this together.”

Senate Bill 27:

House Substitute for Senate Bill 27 extends unemployment eligibility for workers who started to file unemployment insurance claims on or after January 1, 2020. These workers would be eligible for a maximum of 26 weeks of benefits, instead of the current effective maximum of 16 weeks.

“The fallout of the aviation industry has been felt all across Kansas, long before the COVID-19 epidemic,” Kelly said. “Now, more than ever, hardworking Kansans need the support necessary to provide for their families.”

Senate Bill 142:

House Substitute for Senate Bill 142 expands education waiver authority during disaster emergencies. Under current law, students are required by statute to attend at least 1,116 school hours per school year. This bill allows local school boards to receive waivers for this requirement under a state of disaster declaration, with the understanding that they will utilize continuous learning for their students during this time. Additionally, the bill codifies legislative intent that school districts continue to pay all hourly employees during a disaster shutdown.

“In a time of crisis and uncertainty, our schools need flexibility and support to maximize learning opportunities for students while making sure children, their families and school district employees are safe,” Kelly said.

Senate Bill 102:

House Substitute for Senate Bill 102 expands authority of the judicial branch in time of disaster, permitting the Chief Justice of the Supreme Court to issue an order extending statutory deadlines or time limitations on court proceedings and authorizes video conferencing.

“This will allow our court system to continue to function during the crisis while ensuring our court employees and the public are safe and healthy,” Kelly said.

These bills become effective upon publication in the Kansas Register. A special edition has been expedited for publication and printing today by the Legislature and the Secretary of State.

State Treasurer Jake LaTurner announces operation plans for Kansas State Treasurer’s Office during government shutdown

Topeka— In response to the Governor’s order that state agencies shut down nonessential operations beginning March 23^th and continuing through April 3rd, The Kansas State Treasurer’s Office (STO) will continue to serve in its capacity as the state bank.

“The STO will continue to operate in partnership with the Department of Administration to support other State agencies with mission essential functions,” stated Treasurer LaTurner. “As we learn which essential functions agencies plan to carry out we are responding accordingly.”

At this time, STO has enabled services with its banking partner to allow state agencies to make deposits directly to bank branches via drive-through services and will continue servicing ACH payments and wire transfers.

The STO will also continue to service bonds, making payments to bondholders for any bond payments that occur provided that funds have been remitted to the office from the issuer and, in the event of principal payments, the bond or temporary note certificate has been submitted to the office in accordance with the bond or note documentation.

For municipalities in the State of Kansas, the STO will be sending the regular monthly distribution for sales and compensating use tax, community development, and transportation development district tax early. The payment was previously scheduled to settle on March 30^th and will now settle in the accounts on March 25^th. Municipalities who receive this distribution will receive email notification of these payments on Friday, March 20^th.

The Unclaimed Property division of the STO will offer limited services for the next two weeks. Kansans can search online for claims via the STO website www.kansascash.ks.gov where many claim requests can be submitted online. Claim packets can also be requested via email or postal mail. However, claim processing and payments will be delayed.

The STO will utilize this time to further enhance its teleworking plans so that services may return in full without sacrificing the health and safety of its employees or customers.

Situation Overview
For more information: www.kdheks.gov/coronavirus

2019 Novel Coronavirus (COVID-19) in Kansas Test Results
Updated 3/19/20 at 10 a.m.

Total Positive Cases
34
Private Labs
12
Kansas Health and Environmental Lab
22
Deaths (included in above numbers)
1
Out-of-State Resident Positive Cases
(not counted in Kansas numbers)
2

Positive Case Information
County
Number
Butler County
1
Cherokee County
1
Douglas County
1
Franklin County
1
Jackson County
1
Johnson County
16
Leavenworth County
2
Linn County
1
Morris County
2
Wyandotte County
8
* Ford and Miami Counties reported positive cases in out-of-state residents. Numbers included in cases home states.
2