By COLE REIF
Great Bend Post
The City of Great Bend controls two economic development loan funds through the Kansas Department of Commerce’s CDBG program. CDBG stands for Community Development Block Grant and it exists to help support the working capital needs of small businesses.
In response to the COVID-19 crisis, the Commerce is allowing immediate use of local CDBG revolving loan fund monies to assist businesses in getting by after the economic hit.
Great Bend City Administrator Kendal Francis says the loans can be used for salaries, inventory, utilities, rent, insurance payments, etc.
"There are no matching funds or collateral that is required," said Francis. "Normally when you apply for one of these loans, it has to go before a loan review board. They have taken away those requirements."
The balance of the two Great Bend funds as of December 31, 2019
was $179,200.
"The money is only to be given to those businesses with low to moderate income," Francis said.
The Great Bend City Council approved the CDBG loan to DAT Fitness of Great Bend. DAT Fitness was granted a $4,000 loan that will have .5% interest over a three-year loan. There is also the option of making interest only payments for 12 months.
DAT Fitness provides personal training and fitness classes inside The Fieldhouse on 9th Street. The business stated COVID-19 has caused memberships to drop and people have stopped coming to workout.