State officials try to reassure businesses, workers in COVID-19 pandemic

Interest-free loan program announced for hospitality industry; labor office swamped with 10,000 more unemployment cases this week

State officials tried to reassure Kansas residents, businesses and workers at a news conference Friday morning, announcing a new interest-free loan program for the hospitality industry, and urging workers and businesses to file unemployment applications and paperwork online.

Gov. Laura Kelly said Kansas expects to qualify for disaster loans from the Small Business Administration. That would provide low-interest disaster loans of up to $2 million to small businesses suffering economic injury because of COVID-19, she said.

The loans, available from the SBA, would keep Kansas businesses afloat, if they are unable to receive assistance elsewhere.

Gov. Kelly said state government will use every tool possible to assist businesses and workers.

Gov. Kelly said a hospitality emergency relief (HIRE) fund is being implemented to provide speedy assistance to hospitality businesses whose operations are being disrupted and need support now.

Gov. Kelly said she had signed a bipartisan bill on Thursday that extended unemployment benefits from 16 weeks to 26 weeks for Kansas residents who are eligible for unemployment.

According to officials, about 762 hotels and accommodation businesses, and nearly 10,000 food establishments in Kansas are faced with difficult economic times.

Kansas Commerce Secretary David Toland said they worked through the weekend to provide documentation showing substantial injury had occurred to businesses from the coronavirus, in order to apply for disaster relief, and they hoped the state would be approved on Friday or Saturday. They applied for all 105 counties in Kansas. The low-interest loans, up to a $2 million total, would be for businesses suffering from substantial injury, he said.

The state has identified $6.3 million in federal Community Development Block Grant funds in 37 Kansas communities that could be used for revolving loan programs in those communities, he said. The state has reduced the time to process these loans, and might be able to issue working capital loans in as little as two days, he said.

The HIRE fund would make short-term loans to hospitality firms with 100 or fewer employees, to pay for payroll, utility bills, commercial loans, accounts payable, inventory and more, he said. It is intended to be a bridge loan to help firms survive, he said. The maximum loan amount would be $20,000 with no principal and interest due until four months after the loan closes.

About $5 million is being made available to establish the fund, he said, with decisions made within a few days. Four counties in the Kansas City area, defined by the department as Johnson, Wyandotte, Shawnee and Douglas counties, could receive a combined total of $2 million.

More information will be available at the Commerce Department website, www.kansascommerce.gov/ and https://www.kansascommerce.gov/covid-19-response/hospitality-industry-relief-emergency-hire-fund/?fbclid=IwAR1eh1WVxCwZZ_qHMgPHJOPzyiPiK61YMIHT_6w_cEYRFgYbK5jwbkteG6s.

Chuck Magerl, owner of Free State Brewing in Lawrence, spoke at the news conference, saying the stunning downturn has taken an immense toll on restaurants, coffee shops, and other establishments including lodging.

Kansas Secretary of Labor Delia Garcia said there were 1,296 unemployment insurance claims last week, and 11,355 this week, an increase of 10,059 in just the first week.

“We are in uncharted waters right now,” she said.

She said it is important for workers and employers to use the labor department’s website, www.dol.ks.gov/, or www.getkansasbenefits.gov/, as much as possible. The state office is swamped with phone calls, wait times are long and getting information online will speed up the process, she said. The phone lines should be reserved for those who are not able to use the website or for non-English speakers, she said.

Many workers that are unemployed or working reduced hours may be eligible for unemployment insurance benefits for 36 weeks, she said. The requirements are less stringent at this time.

Unemployed workers may receive a maximum of $488 and a minimum of $122, she said.

Kansas Banking Commissioner David Herndon reminded people that their money is safer in banks that are insured by the FDIC, which many Kansas banks are, than it is in cash in their homes. The banks have federal insurance up to $250,000 per account.

While there are no reported instances of people making large cash withdrawals, he said some people have called banks and asked if it is available, and some have taken out more than usual.

In answer to a question, Gov. Kelly said they are looking at all deadlines, and will be modifying them where they need to.

To view the news conference on Facebook, visit https://www.facebook.com/GovLauraKelly/videos/207168857203293/.

Rep. Davids discusses COVID-19 effect on Kansas’ small businesses

During a U.S. House Small Business Committee hearing Tuesday, Rep. Sharice Davids, D-3rd Dist., examined the effect of the coronavirus-19 on Kansas’ small businesses and discussed additional measures Congress could take to offset economic hardship for workers and businesses.

This hearing comes in the wake of Congress’ $8.3 billion emergency funding package, which enables the Small Business Administration to make an estimated $7 billion in low-interest loans to affected small businesses.

“For small businesses in Kansas and across the country, the coronavirus has the potential to cause devastating financial hardship that would have a ripple effect throughout our economy. These businesses make up the backbone of our communities, and we have to ensure they are properly supported and protected,” Rep. Davids said.

Rep. Davids shared a story of a small business owner in Overland Park who is worried about how decreased sales could jeopardize her businesses’ future – leaving her unable to cover rent, pay her bills or get groceries.

“Preventative measures to help contain and mitigate the coronavirus are essential for public health and safety, and have to remain our priority. But we cannot overlook the possible impact of this epidemic on our economy and small businesses, which are so vital to Kansas’ Third District,” Rep. Davids said.

To watch Davids’ remarks during the hearing, visit https://www.dropbox.com/s/7jw3alo2h870l7e/Davids%20COVID%20question.mp4?dl=0.

New stores opening at Legends Outlets

Hollister, a global teen apparel retailer, opened recently on the west side of The Legends Outlets, I-435 and I-70 in Kansas City, Kansas.
DEMDACO, a gift store offering home decor and gift products, will open in late spring near the Kate Spade and Michael Kors stores on the west side of The Legends Outlets, I-435 and I-70 in Kansas City, Kansas.

Some new stores are opening this spring at The Legends Outlets shopping center at I-435 and I-70 in Kansas City, Kansas.

The new stores will include DEMDACO, opening in late spring. The gift store offers home décor products, holiday gifts, seasonal gifts, baby gifts, fashion apparel and accessories. It also will have a coffee and baked goods refreshment area.

The store will have 2,460 square feet at 1847 Village West Parkway, Suite K-125, near the Kate Spade and Michael Kors stores on the west side.

It will be the first time DEMDACO, with headquarters in Leawood, has had a public, consumer storefront. Currently, DEMDACO has products at more than 10,000 retailers nationwide and online.

“After more than 20 years of selling to gift shops all over the country, we’re excited to open our first DEMDACO-branded store here in our hometown at Legends Outlets,” Lance Hart, DEMDACO president, said in a news release. “This provides a new opportunity to better understand which products and concepts resonate with consumers from a wide region and share what we learn with our network of retail partners,” Hart said.

Hollister, a global teen apparel retailer, recently opened a pop-up location on the west side of the Legends.

Hollister offers a variety of everyday apparel for teens at full retail prices. The store was inspired by California’s laidback attitude.

A sister store of Abercrombie & Fitch, Hollister will serve teens ages 14 to 18.

The 6,225-square-foot store opened at 1843 Village West Parkway, Suite C-111, across from Tommy Hilfiger.

Another new location at The Legends Outlets is Yogurtini, offering self-serve frozen yogurt.

Yogurtini is in a 1,588-square-foot space at 1829 Village West Parkway, Suite T-131, next to Lids near the center’s yellow brick road.

The store offers 16 rotating frozen yogurt flavors, including nonfat, low-fat, gluten-free, dairy-free and no-sugar-added options, along with six kinds of edible cookie dough and more than 65 toppings.

Guests may make their own concoctions by mixing and matching different tart and sweet flavors with various toppings. Regular flavors such as Ultimate Chocolate, Classic Vanilla, Chelsey’s Cheesecake and Peanut Butter are favorites, but Yogurtini is constantly adding new options.

The Legends location is Yogurtini’s fifth in the Kansas City area and the first in Kansas.

Go! Calendars Games and Toys recently opened a temporary location at Legends Outlets. Known for its expansive selection of calendars, the store also features a large assortment of games, toys, puzzles and gifts.

The store has a 12,000-square-foot space near The Lawn at 1867 Village West Parkway, Suite D-101. As a temporary tenant, it will remain open through Jan. 31, 2021.

In addition to products, Go! Calendars, Games and Toys will hold special activities throughout the year, including game nights, instructional classes and craft parties.