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Kansas Office of Recovery





November 18, 2022






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This week’s edition of the Office of Recovery Newsletter features information about the first round of the Capital Projects Fund (CPF) that help lay the foundation for high-speed broadband to rural communities in Kansas. This is the first of three rounds of awards. Seven broadband companies in rural counties received a total of $15.7M in funding. 

More information on the GROWKS loan and equity program is also included. The first round of funding awarded $850,000 to four small businesses that are in the early stages of growth. The GROWKS program provides entrepreneurs companion financing to bank loans also known as matching capital, that can be used for any type of business expense. 

Also highlighted in the newsletter is the COVID-19 Retail Storefront Property Tax Relief Program. This program offers property tax assistance to help eligible Kansas small businesses recover from the COVID-19 pandemic. The application for this program is open and small businesses must apply for assistance by April 15, 2023. 

For the latest Treasury updates and information about resources available to Kansans, see the “Updates to Services and Support” section of this newsletter. For the most up-to-date information, please visit the Office of Recovery website at: COVID.ks.gov [ [link removed] ]  

 

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Broadband Development in Kansas
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*Capital Projects Fund Awards $15.7M for Expanded Broadband Across Kansas* 

It was recently announced that $15.7 million will be awarded to seven service providers that will bring high-speed broadband service to underserved, economically distressed, and low-population areas of the state. This is the first of three rounds of awards from the Kansas Capital Project Funds (CPF) Broadband Grant Program. This phase of funding will connect more than 1,900 homes, businesses, schools, healthcare facilities, and other public institutions to fast, reliable internet in the next 24 months. 

This funding aims to solve the “last mile” of broadband needed in critical areas. The targeted counties have as few as five locations per square mile, which until now has prevented companies from investing the resources to deliver a quality broadband option. The CPF Grant Program provides the funding needed to implement high-speed broadband in these areas of the state. 

The new grant program results from the U.S. Department of Treasury’s approval of Kansas’ Coronavirus Capital Projects Fund (CPF) broadband infrastructure plan. The federal CPF program is a $10 billion initiative available to states, territories, and tribal governments under the American Rescue Plan Act to fund capital projects. Kansas was one of the first eight states in the country approved for funding under this program and was allocated $83.5 million. The CPF program opportunity resulted in 141 applications from providers requesting $693 million in funding support to build out broadband infrastructure across Kansas.   

The service providers selected to deliver these last-mile connections will provide partial matching dollars, bringing the total project amount for the first round to $19,700,991. All 141 applications remain eligible for the next two rounds of funding. 

The first round of grant recipients include: 


* *Craw-Kan Telephone Cooperative* (Anderson and Allen counties) – $4,584,590 to connect 385 premises 
* *Giant Communications* (Jackson County) – $895,295 to connect 163 premises 
* *MT Networks LLC* (Coffey County) – $2,581,932 to connect 326 premises 
* *Nex-Tech* (Thomas County) – $541,320 to connect 64 premises 
* *Pioneer Communications* (Hamilton County) – $202,484 to connect 54 premises 
* *S&A Telephone* (Lyon County) – $3,746,870 to connect 421 premises 
* *Totah Communications* (Montgomery and Chautauqua counties) – $3,244,793 to connect 500 premises 

To learn more about the CPF program’s eligibility, timeline and objectives, please visit the Kansas Office of Broadband Development (KOBD website [ [link removed] ]. 

 

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Funding Opportunities for Small Businesses
GrowKS

 

*Kansas Entrepreneurs Receive $850,000 in First Round of GROWKS Awards* 

This week, the first round of recipients of funding from the GROWKS Loan and Equity programs, which help small businesses, particularly those in underserved areas, access capital in the early stages of growth. In the first round, four companies – three of which are woman-led – received a total of $850,000 in companion financing to bank loans (also known as matching capital). 

Earlier this year, Governor Kelly announced the creation of the Kansas Framework for Growth GROWKS Loan Fund and the GROWKS Equity Programs, run through the Kansas Department of Commerce, to distribute $69 million in funding awarded to Kansas through the U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI). 

Together, the two programs represent the most expansive set of small business funding programs ever offered by the State of Kansas. 

The programs engage Kansas’ extensive network of community and business support partners through NetWork Kansas to provide companion financing to bank loans. The approved $850,000 has already leveraged more than $4 million in private capital. 

Ultimately, more than $1 billion in funding will be invested by the private sector over the life of the programs, which can be used for common small business expenses such as inventory, equipment, supplies, and working capital. 

The first round of GROWKS Loan and Equity programs recipients include: 


* *QuickHire, Inc.*, a Wichita-based technology platform that connects jobseekers with service-based work opportunities. The funding will be used to support marketing, market research, and commercialization. 
* *Celerity Enterprises, Inc.*, a Kansas City-based technology platform that focuses on settling special pricing agreements between suppliers and distributors. Funding will be used for hiring staff, sales development, and platform upgrades. 

* *ELIAS Animal Health, LLC*, an Olathe-based medical biotechnology company advancing novel therapies for treating cancer in pets. Funding will be used to expand manufacturing capacity, sales and marketing, and customer service. 
* *SoHome Kids Foundation*, a Neodesha-based startup company that aims to provide residential facilities to children ages 0-18 in the Kansas foster care system. Funding will be used to renovate a group home. 

For more information about GROWKS, visit www.growks.com [ [link removed] ]. 

 

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Open Sign

 

*COVID-19 Retail Storefront Property Tax Relief Funding is Still Available* 

In June 2022, bipartisan House Bill 2136 was signed into law, investing $50 million to help small businesses recover from the COVID-19 pandemic. The COVID-19 Retail Storefront Property Tax Relief Act provides financial assistance to certain businesses impacted by COVID-19 related shutdowns and restrictions during tax years 2020 and 2021.   

The Kansas Department of Revenue (KDOR) has issued Notice 22-04, COVID-19 Retail Storefront Property Tax Relief Act [ [link removed] ] which provides details of the program, businesses that will not qualify, and the calculation of the assistance that may be granted. 

The COVID-19 Retail Storefront Property Tax Relief Program is funded through the federal American Rescue Plan Act (ARPA), which requires a federal Unique Entity Identifier (UEI) to be completed for a business to be eligible to receive assistance. Due to federal requirements, the Kansas Department of Revenue cannot process a retailer's application for the Retail Storefront Property Tax Relief program unless a business has secured a federal UEI number. 

The UEI is issued at no cost through the federal System for Award Management website, SAM.gov [ [link removed] ]. 

Due to recent increases in the number of entities registering with SAM.gov, it may take up to 25 business days for new registrations to be processed. For any issues related to registering with SAM.gov or obtaining a UEI, applicants can contact the Federal Service Desk at 866-606-8220.  

Once registration is complete and confirmed, business owners can apply for the COVID-19 Retail Storefront Property Tax Relief Program through an online application [ [link removed] ] created by KDOR. The application provides definitions, explains the assistance process in detail, and specifies exactly what information must be provided and/or submitted in support of the application. 

Applicants with questions regarding the COVID-19 Retail Storefront Property Tax Relief Program can contact the Kansas Department of Revenue at 785-368-8660.   

Small business owners have until April 15, 2023, to apply for this financial assistance. 

 

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Updates to Services and Support
Services and Support
 

*Connecting Kansans to the Bipartisan Infrastructure Bill* 

On November 6, 2021, Congress passed the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) [ [link removed] ]. This bill provides funding to States and communities for investments in roads, bridges and rails, expanding access to clean drinking water and high-speed internet, addressing the climate crisis, and investing in under-developed communities.  

Local governments that have received American Rescue Plan Act funding can use a portion of those dollars alongside funding opportunities provided by the Bipartisan Infrastructure Law (BIL). The US Treasury Final Rule states that ARPA funding up to the amount of the recipient’s reduction in revenue due to the public health emergency, generally may be used to meet the non-federal cost-share or matching requirements of other federal programs.  

A resource for local governments is the Kansas Infrastructure Hub [ [link removed] ], which coordinates Kansas state agencies and local entities as they administer and apply for funding available through the federal BIL. The Hub will identify statewide and regional infrastructure priorities, strategize as to how to maximize investment opportunities, and promote best practices in securing and distributing funding. 

Any questions or inquiries about the BIL or infrastructure funds should be directed to [email protected]. <[email protected]> 

 

*Federal Funding Available for Several Kansas Counties * 

On September 29, the U.S. Department of the Treasury announced the release of Local Assistance and Tribal Consistency Fund (LATCF) [ [link removed] ] payments to certain counties. The LATCF provides a total of $1.5 billion to “eligible revenue sharing counties” under the American Rescue Plan Act (ARPA). 

A total of 2,086 local governments, which includes approximately 50 counties in Kansas, are considered eligible revenue sharing counties under the LATCF formula. Click here [ [link removed] ] to see the full list of eligible recipients.  

Each eligible county must apply to claim the funding allocated to them. Treasury’s online portal [ [link removed] ] provides application instructions and information on specific funding levels [ [link removed] ] for each eligible county.   

*The deadline for counties to apply through the Treasury’s online portal is January 31, 2023.  Should a county miss the application deadline, it will not be eligible for any LATCF payments.*  

For more information on eligibility of counties, eligible uses of funds and reporting requirements please visit the National Association of Counties website [ [link removed] ]. 

 






Contact the RO

The Office of Recovery is here to offer support and coordination.  Questions and inquiries may be submitted via the Contact Us [ [link removed] ] form. Please visit covid.ks.gov [ [link removed] ] for up-to-date information and resources on recovery from the COVID-19 pandemic for Kansas residents, businesses, and communities.

*Question/Request Form* [ [link removed] ]


*DeAngela Burns-Wallace, Ed.D.*

Secretary, Kansas Department of Administration

On behalf of the Office of Recovery,

Kansas Governor Laura Kelly

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