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ReboundKC: Delays plague city plan to offer $500K in small businesses

Posted at 4:52 PM, Apr 24, 2020
and last updated 2020-04-27 11:29:07-04

KANSAS CITY, Mo. — Three weeks ago, Kansas City, Missouri, Mayor Quinton Lucas introduced an ordinance to provide $500,000 to Kansas City small businesses facing the fallout of the pandemic.

"There was a contract set that had anticipated whoever was giving would do a loan loss reserve fund to make it easier. So that our $500K would leverage a $2 million investment from private actors," Lucas told 41 Action News on Friday.

The City Council voted 7-6 to work with the Economic Development Corporation's lending agency over AltCap - who is now moving forward with its own relief program.

"Within 72 hours announcing the fund, we had over 600 loan requests through that intake process totaling over $30 million in loans. Way more than what we had available," AltCap President Ruben Alonso III said.

He told 41 Action News they are pressing ahead to raise $5 million to help local businesses.

As for that $500,000 from the city, no one has received it yet. The EDC Loan Corp says it received a different proposal this week from the original ordinance, holding up the money.

"I believe it's time for us to put people over politics and move this process forward," EDC Loan Corp chair Terry Riley said.

Despite the current snag, the Mayor's office and EDC Loan Corp planned to meet Friday, and even if they have to work through the weekend, they're going to be working together to try and get this money out on the street to local small businesses.

"It's gotta be one of those nights burning the midnight oil and get it done and get those loans out on the streets so we can help small businesses in Kansas City," Lucas said.