TOPEKA – The Senate Financial Institutions and Insurance Committee passed critical legislation today to help Kansas small businesses owners, paying attention to our crucial Kansas agricultural community.
Using a program called the Kansas Economic Recovery Linked Deposit Loan Program, which mirrors a program designed during a less drastic economic downturn, committee members passed Senate sub HB 2619. The bill essentially reallocates $60 million from idle funds, originally set-aside for a housing program which already served all requests, and makes the funds available to businesses and farmers currently in crisis.
What that means for businesses and farmers is that banks will have $60 million to borrow at less than the daily market rate so that they can provide very low interest rate loans to customers.
“We’re working very hard to provide solid legislation to offer this Governor in a short amount of time,” says Senator Rob Olsen who chairs the committee. “Using the same design we used to help the Agricultural Community through a previous crisis, makes it easy for small business get the quick access they need to attempt to save their businesses,” says Olson.
“Our organization, which represents 99% of the commercial banking industry in Kansas, has been working closely with legislative leaders to develop a robust state-level response addressing the need for low-cost credit for Kansas businesses and appreciate the committee’s hard work to help make it happen,” says Doug Wareham, President & CEO of the Kansas Bankers Association.
“Kansas businesses need our help and the Kansas Senate is here, in the Statehouse, to make that happen while we prepare for floor debate next week,” says Senate President Susan Wagle. “This legislation will provide long term solutions to our ag and business community. Our farmers and ranchers and small business owners will need every tool possible to get through this crisis.”