Editor’s note: The following is part of Startland News’ ongoing coverage of the impact of Coronavirus (COVID-19) on Kansas City’s entrepreneur community, as well as how innovation is helping to drive a new normal in the ecosystem. Click here to follow related stories as they develop.
AltCap is reopening access to a growing pot of rescue dollars May 27, extending community relief for small businesses hit hard by COVID-19.
“It is clear that continued access to flexible, patient capital is critical to the recovery of our small businesses and our region’s economy,” the organization said Thursday in a release.
Nearly $2 million has already been approved for 70 Kansas City businesses in the form of $50,000 loans through the AltCap-backed KC Region Small Business Relief + Recovery Loan Fund.
“We were booked two months in advance for shoots, and all but one shoot was canceled,” said AltCap borrowers Jasmine and Amber Baudler of Stellar Image Studios, discussing the impact of COVID-19 and the AltCap relief fund on their small business. “So this really affected our revenue stream, our confidence, and to be honest, our livelihood.”
Click here for more details on the rollout of the local COVID-19 small business relief loan fund, which is backed by a public-private partnership including the Ewing Marion Kauffman Foundation, civic organizations, and individuals.
“Many small businesses are now faced with additional capital expenses to ensure a safe reopening on top of the existing expenses they are trying to cover,” AltCap said.
“Many of [needs] are not being adequately addressed by other relief programs.”
The loans offer entrepreneurs short term support with no interest or minimum credit score needed and deferred payments for up to twelve months, the financial organization said.
Businesses preparing to apply for the latest round of support are encouraged to prepare required documentation, identify document and financing needs, and options for collateral — which will follow more flexible standards than usual, AltCap said.
The first round of AltCap aid saw $30 million in requests for its $5 million fund within 72 hours.
Click here to read more about the first round of relief issued.
If a small business is in immediate need of capital, AltCap urges entrepreneurs to consider applying for an AltCap Paycheck Protection Program (PPP) loan.
This story is possible thanks to support from the Ewing Marion Kauffman Foundation, a private, nonpartisan foundation that works together with communities in education and entrepreneurship to create uncommon solutions and empower people to shape their futures and be successful.