Editors note--the following release was submitted Monday by the Hiawatha Foundation for Economic Development and city of Hiawatha

The Hiawatha Foundation for Economic Development (HFED) and the City of Hiawatha will be accepting applications for a special round of KS Department of Commerce CDBG grants. We have been informed the State of Kansas will receive $9,029,815 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CDBG-CV funds will be available for non-entitlement Cities and Counties, with awards being made for issues triggered by the COVID-19 virus where no other funds are available. Proposed activities will be grants to micro-businesses (up to 5 employees) and small businesses (6 to 50 employees). There will also be grants available for non-profit clinics and hospitals for Personal Protective Equipment, as well as grants for Meal Programs.

There are three categories of funding:

1 – Business Grants – Grants will be available for inventory purchases (up to a 60 day supply) or for working capital; with funding to being awarded based on business size. Funding limits based on business size are as follows:

Micro – up to 5 employees (including owner(s)); $25,000 per employee available; employees must be 51.1% Low to Moderate Income (LMI); i.e. if you seek $25,000 for 5 employees for a $125,000 grant, at least 3 employees must fall into the LMI category

Small – 6 to 50 employees (including owner(s)); $35,000 per employee available; employees must be 51.1% Low to Moderate Income (LMI); i.e. if you seek $35,000 for 5 employees for a $175,000 grant, at least 3 employees must fall into the LMI category

The LMI limits are:

$36,200 – 1 person family

$41,400 – 2 person family

$46,550 – 3 person family

$51,700 – 4 person family

$55,850 – 5 person family

$60,000 – 6 person family

$64,150 – 7 person family

$68,250 – 8 person family

Per the program requirements, the City applies on behalf of businesses and may line up several businesses for one application. The maximum award for the application is $200,000. Eligible costs are reimbursable retroactive to 3/1/2020 and the businesses do not have to be closed or, have been closed; just disadvantaged by Covid-19 and in need of aid to retain jobs. Additionally, counties may apply for businesses not covered by a city application however, any revolving loan funds available must be exhausted first.

2 - Personal Protective Equipment

The grants for PPE is for non-profit clinics and hospitals. To qualify, the clinic or hospital must document that their insurance doesn’t cover the costs and that no other money is available for the costs. The City can apply on behalf of the hospital or clinic; with the maximum award of $300,000 per application combined with Meal Programs applicants.

3 – Meal Programs

These grants can be for meals on wheels, food banks, lunch programs, etc. To qualify, the organization must document that their insurance doesn’t cover the costs and that no other money is available for the costs. The City can apply on behalf of the organization; with the maximum award of $300,000 per application combined with PPE applicants.

Applications are expected to be made available from CDBG by May 13, 2020 and will be accepted on a first come – first served basis; until all funding is exhausted. CDBG staff expects a quick turnaround on applications but no specific time frame has been committed to.

The maximum allowable award to a city of county is $500,000 ($200,000 for business grants and $300,000 for PPE and Meal Program grants).

As this is a new program, we do not yet have all the information regarding required documentation but, for any type of grant applied for, we expect purchase and/or payroll receipts being needed. For the Business Grants we’re expecting to have to perform income surveys of employees and show proof of income such as a copy of their W-2 or tax documents. For clinics, hospitals and meal providers it will probably be required to review your insurance policy and operating budgets to show you had no other funds available for the COVID related expenses. It would be helpful to have that information readily available ahead of May 13th for interested businesses so we can submit an application as soon as possible.

If interested in applying for a grant, please contact:

Mikaela Moore with HFED at hfedoffice1@gmail.com or,

Mike Nichols with the City of Hiawatha at cityadministrator@cityofhiawatha.org.