Kansas Gov. Laura Kelly forgives $5M in COVID-19 hospitality business loans

WICHITA, Kan. (KSNT) – Kansas Gov. Laura Kelly has forgiven $5 million given to 344 Kansas companies Tuesday after changing all Hospitality Business Aid Emergency loans to grants.

The state authorities began the HIRE funding in March 2020 to supply aid to Kansas hospitality companies confronted with earnings losses because of the COVID-19 pandemic. It was initially began as a working capital mortgage program by NetWork Kansas, and now the funding issued will now not should be paid again. Companies that made repayments will likely be reimbursed, based on the governor’s workplace.

“In communities of all sizes, hospitality companies present a supply of shared area and shared id,” Kelly stated. “This motion permits the mortgage {dollars} we delivered at first of the pandemic to now not should be paid again, serving to companies keep operations as we work to get well from the challenges led to by COVID-19.”

Companies who acquired a portion of the $5 million in loans now turned to grants embody eating places, bars, lodging services, convention facilities and occasion areas, based on Lieutenant Governor and Commerce Secretary David Toland.

“Working with our great companions at NetWork Kansas, we moved shortly to roll out a working capital mortgage program that delivered tens of millions of {dollars} to a whole lot of hospitality companies in communities statewide,” Toland stated. “Right this moment, we’re asserting an necessary step ahead in serving to these companies get again on their ft and get well from a really troublesome scenario.”

Anybody who acquired a HIRE mortgage will see an e-mail explaining after they can see the mortgage forgiveness or reimbursement happen, based on the governor’s workplace. It plans to have this system accomplished within the subsequent 30 days. The Division of Commerce may also notify all of its companion organizations to cease amassing mortgage funds on the HIRE funds.