May 26, 2020 10:26 AM

State grant could help up to 30 businesses, if not awarded, some will close

Posted May 26, 2020 10:26 AM

HUTCHINSON, Kan. — A state grant that Hutchinson is going for could help as many as 30 businesses in the city.

According to the grant application for the CDBG-CV grant that will have a public hearing Tuesday morning in a special meeting  at 9 a.m. of the Hutchinson City Council, nine businesses that would be eligible have fewer than five employees and 21 have between 6 and 50 employees.

Surveyed businesses reported anywhere from a 30% to an 80% drop in sales since March. One example is Metropolitan Coffee, who had to temporarily close both of their locations and lay off all staff.

Also, Wifco steel products is looking at potentially reducing their workforce by 40 employees once PPP funds are exhausted, as sales and demand have not increased.

The application says, "These business owners are out of options and need funding assistance to continue to operate, as many are without other options. Without the help of CDBG-CV many of these business owners may have to close their doors for good."

The City plans to distribute CDBG-CV grant funds via an application process with applications based on first come/first served. If the number of applications exceeds the amount of funds available, those who did not get federal money and those who have the most low income employees will come first.

The initial application deadline will have a timeline of 14 to 21 days to award grants to businesses in a timely manner, should the grant be awarded.