In the News

EDC, banks to make loans, insurance available to Arkansans

El Dorado News-Times
3/28/2020

With many businesses closing and Arkansas reaching record-high numbers of people filing for unemployment, Gov. Asa Hutchinson urges Arkansans to continue to work and take advantage of benefits afforded by the state and federal government.

During Saturday’s daily press briefing, Hutchinson was joined by Sec. of Commerce Mike Preston, Arkansas Bankers Association Chairman Rob Robinson and U.S. Congressman French Hill (R-2) to discuss insurance, unemployment, banks, small businesses and ways the state economy will recover.

After announcing 404 cases in the state and two new deaths related to the coronavirus (COVID-19) pandemic, Hutchinson expressed his frustration with testing, noting that although testing equipment and capacity has expanded, the supply chain of reagents, or chemicals necessary for the equipment to function, is backed up.

While testing is still continuing, it is not as advanced as Hutchinson had hoped.

“This is a health crisis we’re facing in Arkansas, but it’s also a financial crisis for many Arkansans,” Hutchinson said.

In response to a reporter’s question about supplies, Hutchinson said he has reached out to the director of the CDC and the private sector about addressing the supply chain and that they’re doing the best they can. He also said other states throughout the nation are working with similar circumstances.

Sec. of Health Dr. Nate Smith said some of Arkansas’ neighboring states are in more desperate situations.

Preston began the economics discussion with the quick action bridge loan program through economic development. A bridge loan is a short-term loan that can last a few weeks to 12 months.

Preston said the program will focus on small businesses who need cash immediately. Small businesses can seek up to $25,000 through the Economic Development Commission (www.arkansasedc.com/covid19). He said his office has received about 500 inquiries this week alone about resources for small businesses.

He also said the Arkansas Bankers Association and its members partnered with the EDC for a quick-action loan guarantee program. These loans would be up to $250,000 guaranteed.

“We encourage businesses to still go to your banks and look for all the available resources that you can for funding, and if there are gaps anywhere we can fill in, we’ll partner with those banks up to 80%,” Preston said.

Preston also discussed unemployment insurance. He said his office has seen 30,000 applicants for unemployment.

To help handle the increased volume of filers, Preston said his office is expanding its capabilities by expanding its website (ezark.dadws.arkansas.gov). He said beginning Monday, the office is expanding its line capacity and the number of people answering calls and processing claims.

“We hope to be caught up, but we realize over the next couple of weeks that those numbers will probably not improve as a state and we’re going to have more coming in,” Preston said. “Be patient with us, you will get processed. It is backdated to the day there was separation from your employer.”

Preston also said in addition to the CARES Act, which was signed by President Donald Trump Friday and will provide emergency assistance and health care response, will add $600 of weekly benefit payments on top of the normal state payment for pandemic unemployment assistance.

Rob Robinson with the Arkansas Bankers Association said all Arkansas banks are open, safe and actively working to help citizens and businesses.

He also said savings and checking accounts are safe and protected.

“Your money is safe in the bank, not in your mattress or buried in a coffee can in your backyard,” Robinson said.

He said Arkansas banks will be able to use the tools in the CARES Act to help their customers. He said banks will be able to “approve and originate 100% government guaranteed loans to small businesses, and they’re designed to provide immediate working capital needs to small businesses.”

He said this includes nonprofits, self-employed and independent contractors, veterans organizations and travel business concerns with less than 500 employees.

Robinson also addressed the payroll protection program in the CARES Act, noting it immediately helps small business owners with payroll expenses.

He said the loans can be up to $2 million, but no more than 2.5 times the average monthly payroll.

Robinson said the amount forgiven will be the principal balance of the loan reduced by equal amounts to expenses for payroll, utilities, and rent or mortgage payment over an 8-week period.

He said the interest rate will be no more than 4% once the remaining balance is determined after forgiveness.

Robinson said these loans are non recourse and will not require a personal garnering.

“I recognize we are in uncertain times, but speaking for all the banks in the state of Arkansas, we are open and we’re ready to help you personally or help your small business navigate through these challenging times,” Robinson said.

Hutchinson said although these benefits have been put in place, he wants to encourage Arkansans not to give up on work.

Dr. Nate Smith said of the 404 cases of COVID-19, 15 area children 18 and under, 130 are 65 and older, and 259 are 19-64. He said 61% of the cases have been women; and the racial break up is about the same as it has been with 74% white, 15% African American and the remaining 11% “other.”

For the first time, Smith addressed the number of patients with underlying medical conditions: five cases are pregnant women, 32 have diabetes, 29 cardiac disease, 19 have chronic lung disease, nine have chronic kidney disease and 11 have an immuno-compromising condition.

He said 48 patients who tested positive are in the hospital, 17 are on ventilators, 42 are in nursing homes and 24 people have recovered.

Smith said two more people died with connections to the virus, one in their 70s and the other in their 40s, both in central Arkansas.

LOCAL

According to a Facebook post from Union County Judge Mike Loftin, there are five positive cases of COVID-19 in the county.

In an email to the News-Times, Strong-Huttig School District Superintendent Kimberly Thomas the district will continue to provide meals to students to any child between the ages of 3 and 18 while schools are closed.

Meals will be provided for students Monday through Thursday from 11 a.m. to noon at Strong High School Cafeteria and Huttig City Hall for pick up.

Meal Drop – Off Locations:

Batts Chapel Community
Govan Center - Huttig
Curry Chapel - Gardner Community
Strong Community Center
Shiloh Baptist Church
Thomas said any student that needs a meal and can’t pick up from one of these locations needs to call the school at 870-797-7322 before 10:00 a.m. Monday - Thursday to make meal drop-off arrangements.

“We have also worked with our technology department to ensure the guest wifi is working in the parking lot of both buildings,” Thomas said in the email. “This service is available for our parents and students from 7:00 a.m. – 11:00 p.m. daily.”