For struggling businesses, not enough help, not fast enough

Rep. Davids calls for changes to new federal loan program

Small businesses in Kansas are facing unprecedented challenges, with many shut down and awaiting help from the government during the COVID-19 pandemic.

Many weren’t deemed essential functions or services by the “stay-at-home” order, and some have stopped operating, awaiting government help.

Although federal legislation for small business loans was approved and went into effect last Friday, the structure of the loan program, which works through lending institutions, was not put into place early, according to Kansas officials. Some lending institutions did not receive information on how it works early enough to start on Friday, meaning more waiting for some small businesses.

U.S. Rep. Sharice Davids, D-3rd Dist., on Tuesday called for changes to the federal Paycheck Protection Program to provide quicker and better access to loans for small businesses under the federal CARES Act.

“Kansas small businesses are counting on these loans to keep their businesses afloat and to pay their workers, and it’s unacceptable that many can’t even access this critical assistance,” Rep. Davids said in a statement Tuesday. “While the Trump administration needs to provide much clearer guidance about the implementation of the Paycheck Protection Program, Congress also needs to provide more resources to bolster the program and get relief to small businesses quickly. The House should act on this without delay.

“We must also set guardrails for how this program is administered so that its benefits reach smaller and less advantaged businesses,” Rep. Davids stated. “I’ve introduced legislation that would provide $10 billion in funding for early stage and startup businesses in low-income geographic areas to keep funding flowing to these vital businesses.”

The state of Kansas and local governments also are trying to help with small business loans.

“We recognize that small businesses and large businesses across the state are really feeling the pinch from the coronavirus outbreak, and particularly the businesses not providing essential services under the framework,” David Toland, Kansas secretary of commerce, said Tuesday in a video conversation with U.S. Rep. Sharice Davids, D-3rd DIst. “This is a temporary period, we don’t know how long it’s going to last, but we are determined to support our businesses through this, and see them to the other side of it.”

“This is a different type of economic challenge than we’ve ever seen before,” Toland said. “The pace of this is faster than anything that’s been in living history. So what we’ve had to do is change the way we respond, and to act more swiftly, more creatively, and perhaps with a greater sense of urgency than we’ve ever had to as a state agency.”

The state Commerce Department has been working with state, federal and local initiatives to get loans into the hands of small businesses as soon as possible, according to Toland.

The Paycheck Protection Program was created at the federal level, with $350 billion allocated nationwide for Small Business Administration loans. These loans are to cover eight weeks of payroll and expenses for small businesses, and the loans are forgivable.

Toland said although the federal legislation was passed quickly and SBA moved as fast as it could, in about six days, it was not fast enough for small businesses that need help right now.

“There’s a fair amount of frustration about processes, and this really has to do with the volume and depth of need across the country and certainly, within the state of Kansas,” Toland said. “We’re grateful to you, Rep. Davids, for your leadership on the Small Business Committee, and pushing with SBA to make sure they understand our businesses need help and need help now. It’s got to move at a faster clip than it is.”

Toland said the state commerce department is trying to provide technical assistance to small businesses. It has retrained 10 of its staff to provide technical assistance in conjunction with assistance from Small Business Development Centers, local chambers of commerce, economic development professionals and lenders.

The state Commerce Department has started a live chat for questions and answers about SBA-related questions at Kansascommerce.gov, he said. He said he recognized there were things they couldn’t control, and assistance at SBA was in that category.

Rep. Davids noted that the legislation was passed quickly for the federal government, but she understood that it’s not necessarily fast enough for the small businesses.

“One of the things I’m going to keep doing is making sure SBA has the support and resources it needs to implement the program,” Rep. Davids said. “My hope is that we’ll be able to see movement more quickly on this.”

State and local loan programs

Toland also outlined state and local loan programs for small businesses, including some new ones.

Kansas started the $5 million HIRE (Hospitality Industry Relief Emergency) Fund recently for hospitality businesses such as restaurants, bars, lodging establishments and event centers, but all those funds have now been allocated, according to Toland.

The first dollars in that program were allocated within 72 hours, he said. It was a bridge program designed to provide dollars quickly until the businesses could get funding through another program, such as an SBA loan, according to Toland.

“We were able to support 346 hospitality businesses across the state,” he said. “Unfortunately we have over 1,000 other businesses that have applied which we haven’t been able to help yet.”

He said the state commerce department is continuing to accept applications for this program, in case additional dollars are made available later. He said they don’t know if additional dollars will be made available later, but if they are, it will be on a first-come, first-served basis. Those who have already applied do not need to reapply, he said. Applications can be made at Kansascommerce.gov.

Toland said the state also has some funding in existing programs for businesses, and is trying to refashion them as part of its COVID-19 response.

Thirty-seven Kansas communities have revolving loan funds where they make loans to small businesses for improvements such as a new façade or new sign, he said.

The state issued directives to communities to make those funds available as working capital to small businesses in their community, he said. Those loans could be used to pay rent, pay salaries or keep the lights on.

He said there was a good response from 37 communities that are actively pushing these dollars out to those that need them, with urgency.

“What the state has done,” he said, “is we cut the red tape in that program.” It normally takes 30 days for an environmental certification, and that was cut to one day, he said.

Communities in the “Incentives Without Walls” loan fund program also have been asked to use these funds as working capital for small businesses temporarily, and quickly, he said.

New state job site

Toland said while there have been significant job losses in the state, there are also job opportunities out there right now. The state has started a new job site for employers and job seekers, to link up opportunities in Kansas related to the coronavirus pandemic.

The site, https://www.kansascommerce.gov/covid-19-response/covid-19-jobs-and-hiring-portal/, is free to use for job seekers and employers, he said. It includes job opportunities in retail, health care and local government.

Close to 1,300 jobs were listed on the site recently, he said. Companies are hiring this moment and are looking for people who want to work, he said. Besides providing jobs for people, he said, it also helps keep things running, providing essential functions for the state and economy.

“This is a real challenge, and it’s like nothing we’ve seen before, but it is a temporary challenge,” Toland said. “We don’t know how long that is exactly, but we are going to get through this.”

He said the state Department of Commerce is determined to make sure they are a strong partner, so they all come out on the other side of this, prepared to turn on the economy at a high rate of speed, and all get back to a new normal.

Rep. Davids, who was wearing a T-shirt in the video that said, “Stay home, stay safe, stay strong,” said it was heartwarming the way people in communities are helping each other. She thanked workers on the front lines, including health care workers and food workers, for their work in keeping people healthy and safe.

To see Rep. Davids’ video question-and-answer session with Secretary Toland, visit https://www.facebook.com/RepDavids/videos/642472146606690/.

To have a live chat about SBA programs with the Kansas Department of Commerce, visit Kansascommerce.gov.

The state’s COVID-19 response jobs and hiring page is at
https://www.kansascommerce.gov/covid-19-response/covid-19-jobs-and-hiring-portal/

For more information about bills Rep. Davids is backing, visit https://davids.house.gov/media/press-releases/davids-introduces-bill-help-small-businesses-during-coronavirus
https://davids.house.gov/media/press-releases/davids-calls-upcoming-coronavirus-response-packages-include-direct-funding
and https://davids.house.gov/media/press-releases/davids-calls-treasury-department-small-business-administration-ensure-small.

Rep. Davids’ coronavirus resource page is at https://davids.house.gov/coronavirus.

Easter services move online in Kansas as governor issues new order limiting numbers

Fifty-seven Kansas counties now have positive cases of COVID-19, according to the KDHE. (KDHE map)
This graph shows new cases in blue and the total number of cases in yellow. In the last day, there were not as many new cases as the day before. (KDHE graph)

For many faith groups in Kansas, religious services already have moved online or to the airwaves under the leadership of church officials.

For those who didn’t, Kansas Gov. Laura Kelly issued a new executive order placing faith groups and funeral services under the same 10-person limit as other gatherings. The order goes into effect at 12:01 p.m. Wednesday.

The timing of the order is just before Holy Week, Easter and Passover services this week.

The number of positive COVID-19 cases in Kansas rose to 900 on Tuesday morning, the governor said, including 27 deaths. There are positive cases in 57 of the 105 counties.

At 3:10 p.m. Tuesday, Wyandotte County reported 194 positive cases, with 10 total deaths.

Holy Week is underway, and with Kansas approaching a peak in the coming weeks, the risk of COVID-19 cases through additional church gatherings is especially dangerous, Gov. Kelly said. She said the action taken brings her sadness.

The governor mentioned three clusters of churches or religious gatherings where COVID-19 has spread in Kansas, comprising 25 percent of the clusters being tracked by the Kansas Department of Health and Environment.

Three church meetings were in Wyandotte County before the stay-at-home orders went into effect on March 24. The church gatherings did not violate the law. According to the Unified Government Health Department’s Facebook page, the three church-related clusters were the Ministers Conference at Miracle Temple Church of God in Christ March 16-22; a gala on March 14 at Rising Star Baptist Church; and the Power Realm Church of God in Christ, all in Wyandotte County.

Gov. Kelly said she consulted with the emergency management team, state Health Department and local leaders to issue the new executive order.

“My action today does not ban funerals from taking place or religious gatherings,” Gov. Kelly said. “I’m wholly committed to protecting Kansas’ religious liberty as governor. Both attending and conducting religious services remains a designated essential function and cannot be prohibited by local orders. Gatherings must simply be limited to 10 individuals at a time.”

Also, all present at the services must adhere to appropriate safety protocols including social distancing and hygiene, she said.

Gov. Kelly said she encouraged all faith leaders to use methods that do not involve in-person congregations.

“This was a difficult decision and could not come at a more disappointing time,” Gov. Kelly said.

Kansans rely on faith leaders for counsel and support especially during difficult times, and especially during Holy Week, she said.

She said she spoke with faith leaders in Kansas and was told that many had already recognized the danger of celebrating with in-person services, and have implemented alternatives. She said churches are livestreaming services, and holding services in parking lots with people staying in cars.

She said thousands of others, including those not actively religious, were affected with the postponement of Easter egg hunts, big dinners with family and friends, and baskets of candy, customs that have all been put on pause, she noted. There was no Easter egg hunt at the governor’s residence this year, she added.

Gov. Kelly also said she does not plan to attend Easter services in person this year.

“These mitigation efforts are a primary defense against COVID-19,” she said. “If we’ve learned anything in the past few weeks, it’s that physical distance does not keep us apart.”

In Wyandotte County, the original local stay-home order did include a 10-person limit on gatherings including church services and funeral services. Then the local order was overridden by the governor’s original order, which specified social distancing but did not give a number limit on church and funeral gatherings. Other groups were limited to 10 in the original governor’s order. In Wyandotte County’s original order, churches were not listed as essential, but they are essential in the governor’s order. The new guidance from KDHE stated that if they are more restrictive, local orders now will override the state’s orders.

Today’s action brings the churches and funerals under the same 10-person limit as other gatherings in the state, according to the governor. The governor’s new order stated that the order prohibits gatherings of more than 10 congregants or parishioners in the same building or same space. Those conducting the service, including ministers, choir, readers and liturgists, may exceed 10 if they maintain a six-foot distance and follow directives on hygiene, according to the new order.

To view the new Executive Order 20-18, visit https://governor.kansas.gov/wp-content/uploads/2020/04/20-18-Executed.pdf.

To see the governor’s news conference, visit https://www.facebook.com/GovLauraKelly/videos/790101771515530/ .

The Kansas Department of Health and Environment issued new guidance on churches, posted at https://www.kdheks.gov/coronavirus/toolkit/Church_Sevices_Guidance.pdf.

The state’s COVID-19 website is at https://govstatus.egov.com/coronavirus.

The Wyandotte County COVID-19 website is at https://alpha.wycokck.org/Coronavirus-COVID-19-Information.

Hospitalized patients in yellow, and nonhospitalized positive COVID-19 patients in blue, by age group. (KDHE chart)

Three more COVID-19 deaths reported in Wyandotte County

The Unified Government’s COVID-19 page reported statistics for Tuesday morning. (UG COVID-19 page)
A graph showed the number of cases of COVID-19 in Wyandotte County increasing. (UG COVID-19 page)

There were three more COVID-19 deaths reported on Tuesday morning in Wyandotte County, according to the Unified Government Health Department’s COVID-19 webpage.

The number of deaths increased from seven on Monday to 10 on Tuesday. There were 190 positive COVID-19 cases and 53 patients hospitalized, according to the UG’s COVID-19 page. There were 190 positive COVID-19 cases in Wyandotte County on Tuesday morning.

On Monday, the Kansas Department of Health and Environment reported 845 positive cases in the state.

Doctors emphasize good hygiene

Doctors at the University of Kansas Health System on Tuesday continued to emphasize good hygiene, staying at home, washing hands and keeping at least six feet away from others.

They had about 33 to 35 positive COVID-19 patients at the University of Kansas Health System on Tuesday, and recently had some discharged patients, according to Dr. Dana Hawkinson, medical director for infection control. There were around nine patients on ventilation, with some coming off ventilation recently.

According to Dr. Steve Stites, chief medical officer at KU Health System, they have not hit a surge yet, and are currently in good shape with the number of ventilators.

Dr. Hawkinson said he hoped that they would continue to flatten the curve.

He said KU Health System is participating in some trials of medications to see how effective and safe they are.

Doctors also said they are seeing some reductions in hospital admissions for patients in the health system. Some elective surgeries have been canceled.

On Tuesday, the doctors’ presentation included information about mental health hospital facilities available for youth, and the importance of having advance planning for care in case of emergencies.

Dr. Mitchell Douglas, medical director of the Marillac Center, said the number of youth coming to the center is down during this coronavirus epidemic, but the number who have attempted suicide is up. He said some families may be afraid to bring family members in to the hospital currently because of the fear of coronavirus. He urged parents who are concerned about their adolescents to call a helpline, doctor or a health facility.

He said measures are in place at the hospital to mitigate the risk of the coronavirus spreading. Temperatures are checked, visitors are limited, surfaces are cleaned, staff members are wearing masks and social distancing is taking place, he said.

Dr. Karin Porter-Williamson, director of palliative care for the KU Health System, said they are trying to overcome how hard it is for patients to be separated, and using telemedicine to bring families together. She said one of the most important things to do currently is to talk to loved ones about what is important in their living, maintain a connection with them, talk to doctors about management of any disease they have, and what concerns the doctors would have if they became sick from COVID-19.

“The more people can do to prepare themselves and their loved ones in this way is really important now,” she said.

Triage protocols also were discussed. If a time comes when health care is out of resources to help, a coalition of medical providers, medical ethicists, nurses and other professionals will be working to say how they can save as many lives as possible in a horrible situation, she said. Kansas and the military already have such guidelines, according to the doctors.

To view the doctors’ video news conference, visit https://www.facebook.com/kuhospital/videos/525731598374443/

The Unified Government’s COVID-19 website is at https://www.wycokck.org/COVID-19.

To view Kansas Department of Health and Environment COVID-19 information, visit
https://public.tableau.com/profile/kdhe.epidemiology#!/vizhome/COVID-19Data_15851817634470/KSCOVID-19CaseData.

Information from the Centers for Disease Control is online at
www.cdc.gov/coronavirus/2019-nCoV/.