Kansas converts hospitality business relief loans into grants
Hospitality business owners in Kansas who received loans from a state program last March, as coronavirus swept the state and forced closures, won’t have to pay back the funds, Gov. Laura Kelly announced Tuesday at Jenny Dawn Cellars in Wichita.
The loan program, called Hospitality Industry Relief Emergency, or HIRE, was converted to grant funding. Any business owners who have already made payments on the loan will be reimbursed.
“In communities of all sizes, hospitality businesses provide a source of shared space and shared identity,” Kelly said. “This action allows the loan dollars we delivered at the beginning of the pandemic to no longer need to be paid back, helping businesses maintain operations as we work to recover from the challenges brought about by COVID-19.”
The state originally created HIRE with dollars from the Job Creation Fund. Kansas will cover the cost of loan forgiveness using federal dollars from the CARES Act, said David Toland, lieutenant governor and commerce secretary.
Last March, the loan money ran dry within 24 hours of the state opening applications, Toland said. In all, 344 businesses across Kansas received $5 million in funds. That includes 68 businesses in Sedgwick County that received about $1 million in loans.
Business owners used the relief dollars to cover payroll expenses, utility bills or other payments that continued while foot traffic dropped.
Jennifer McDonald, owner of Jenny Dawn Cellars, said she had to furlough staff last year but the HIRE loan helped her bring those workers back.
“With the HIRE fund, we were able to survive this pandemic,” she said.
Business owners who received funding through HIRE will receive an email with more details soon. Any repayment and other paperwork should be completed within 30 days.
