Support for Arkansas week provided by the Arkansas Democrat Gazette.

The Arkansas times and Kuer FM 89.

Hello again everyone.

Thanks very much for being with us manufacturing and agriculture.

Two of the three legs of the Arkansas economy and both have been battered by the Corona virus outbreak.

Yet perhaps the casualty most conspicuous to most arkansans has been that third leg hospitality tourism, the shutdown of hotels, motels and many restaurants has had an enormous impact, not only on the lives of owners and employees.

But on state and local tax revenues and will examine that just a few moments.

First, the role of nonprofit organizations in sustaining Arkansas industry in all its forms and sustaining individuals as well.

Perhaps the newest is the 30 day fund designed to provide grants of up to $3000.00 to small businesses.

Its co-founder, Sarah Huckabee Sanders, is here and one of the older and larger organization is the organizations.

Is the Arkansas Community Foundation.

Which was endorsed by Governor Hutchinson just months ago as a conduit for arkansans wishing to aid in pandemic recovering.

Want to thank both of our guests for being with us today but miss Sanders who has an engagement we're going to go to U-verse there is a bit of news involving the foundation which you've the nonprofit with you and your husband.

Have created it's only a couple of weeks old already.

You've expanded it with an academic connection.

Absolutely.

So we just kicked off about 10 days ago and we've seen an enormous response from around the state and taken in hundreds of applications from all four corners of Arkansas in partnership that we announced yesterday through Arkansas State University.

There helping recruit and train student volunteers to process those applications and make sure that the small businesses applying meet the minimum threshold in are eligible to receive one of our forgivable loans.

We ask that a business be owned and operated in the state of Arkansas, being existence for at least a year and have between 3 and 30 employees.

Again, we've seen a tremendous response just within 10 days that large number of applicants.

But we started giving out grants just four days after we opened and the impact is really remarkable and I think is changing our lives as much as it is those of the small business owners that were helping across the state.

According to the announcement you began, your operation began with 100 Grand $100,000.

Where do you stand now?

How much have you?

How much if you dispensed?

So we've more than doubled our fund raising and continue to focus on that every single day.

Our goal is to raise as much as possible to help as many small businesses as we can.

One of the things I like about our operation is were completely volunteer driven.

We don't have paid staff which allows us to invest all of that money back into small businesses by the end of this week will we will have awarded 30 different businesses across the state and we're going to keep doing that as long as we possibly can and look forward.

To giving out more awards every single day next week as well, there is a certain resemblance.

I guess two will have for project comes to mind in the sense that the recipients of your grants don't necessarily have to repay, but they.

They pass it along or they assisted another business or their return it to you.

For assistance to another business.

We don't ask that they, uh, pay this money back.

This is a no strings attached gift from the Arkansas 30 day fund.

What we ask is if they get to a place where they're able, we'd love for them to invest that money back into the organization so we can help another small business across the state.

It's not a requirement, but if they have the ability, we hope that they'll do that and join with us and helping other small businesses.

Sarah Huckabee Sanders, who has another engagement pending, thank you very much for your time.

Thank you for being a part of the broadcast.

You bet thank you, Steve.

Go on to Heather Larkin who is the CEO as it were of the Arkansas Community Foundation.

Miss Larkin.

Thanks again from very much for being part of the broadcast.

You have the foundation created a I guess, a subsidiary.

When the epidemic began, a covert fund and you've already dispensed rather a lot of money if you're not.

That's correct, uh, on March 17th or 18th we opened up our first grant phase from the Arkansas COVID-19 Relief Fund.

We have granted at about 800 grants of 2.6 million dollars since that time in 11 weeks, and we've done that in two phases and an continue to try to put more grant money out there for our nonprofit sector well.

But yes, generally your funds, though, go to other nonprofits in my correct.

That is correct.

We do not make grants to individuals, uh, or two.

For profits, we make grants to, not for profits, governmental agencies, and things like that.

Well, at a time when Washington is sending across the country, certainly anyway upwards of three trillion dollars.

And now there's a great deal of discussion about another aid governmental aid package.

Do you?

What does this say about the need?

What you been able to do so far through the Community Foundation?

What does it say about the role of the nonprofit in a time of high stress such as this?

Well, the role of the nonprofit sector cannot be understated.

We live in a society with three sectors, the government sector, the for profit or private sector, and the not for profit sector.

In each one of those sectors has a very vital role and sometimes we overlapping can work together, but our society cannot actually operate without all three of those sectors on full tilt.

So as you would expect during this pandemic.

Are nonprofits have experienced the perfect storm?

Demand is skyrocketing and donations or declining as people there are under economic stress and can't continue to give at the same level.

Uhm, are nonprofits are seeing folks that have never had to use the services of a nonprofit coming through their doors and needing so much help and direction and an financial support mental health services, child care.

The demand is just skyrocketing, so.

All the money that's coming into the nonprofit sector, both from the government and the relief packages.

There's also the need for private citizens to respond and try to help those nonprofits meet this demand.

and I was going to ask precisely that along those lines anyway, at a time when so many Americans are seeing their income shrink or even disappear, arkansans included how much more difficult as that made the work of the fund raising.

For any non profit.

Yeah, fund raising is is very, very difficult right now.

So many of our nonprofits, so many live hand to mouth just trying to keep the doors open and the service is flowing.

Others live on events, special events, and I, you know what that's done.

There are no events right now, so the revenue streams those fun raising revenue streams are just almost shut down now.

On the other hand.

We do live in a very generous state.

An arkansans are digging deep.

Um people are very very giving an.

They're giving what they can so so at the time when when it is really tough for the nonprofit sector.

The bright spot in all of this is that you see amazing stories where people give up into this Arkansas COVID-19 really fun that the Community Foundation has established.

We have received 3 point $4,000,000 in gifts.

Since you know March 16th or so, uh, just amazing generosity and then to hear Sarah talk about what they're doing with their non profit in the money and the support that's coming in.

It just shows how you know what kind of people we call our neighbors in this state.

Alright, Heather Larkin.

Thanks very much for being with us and good luck with the foundation fund raising.

And we'll be right back.

And we're back and we're sitting down again restaurants.

Some of us, some of them take out and home cooking, all well and good, but maybe growing a bit stale.

Yet consumer inconvenience pales against the medical necessity of social distancing and the impact the.

Retail shutdown has had on thousands of Arkansas businesses and workers in the hospitality and tourism sector.

Not to mention the millions in lost revenue so.

Now a staged reopening.

How to try to make up for lost time joining us Stacy, her secretary of the State Department of Parks and tourism, Monte McNulty is executive director of the Arkansas Hospitality Association.

And Gretchen Hall of the Little Rock Convention and visitors Bureau.

Thanks to all three of you for being with us, Miss McNulty.

Let's start with you if we can, can we quantify what tourism hospitality has lossed in the first almost six months of five months of this year?

Well, we have lost a lot in the April report showed that we were we took the biggest hit in the state.

We were 41.

We had 41,000 arkansans.

It went on unemployment so we lead the the state in unemployment and we hope that that will change.

Gretchen Hall.

The impact in Little Rock AR's biggest convention city.

Yeah, so for the restaurant industry research is projecting restaurant sales to be down about 110 million dollars this year due to Corona virus.

And then in the lodging industry in Little Rock.

Another $34,000,000 Las were in the neighborhood there of 200 million dollars just in Pulaski County in my car.

Or a Little Rock, right?

That's correct, that's a lot of tax revenue law.

Secretary Hurst.

It is indeed, and I don't think there's any debate that the travel and tourism industry in the hospitality industry have been the hardest hit sector of the economy during this pandemic.

We just got our 2% numbers which are based on the tourism trade, largely lodging.

Uhm, and, uh, we're looking at about a 35% decrease in 2% tax based on, uh, the month of March compared to March of 2019, so there's no doubt that it's had a pretty devastating impact on collections.

Is dedicated.

It is it's dedicated to promoting tourism in the state of Arkansas an we've seen an increase year over year for the past ten years in the 2% tax.

This year we've had a really Goodyear thus far, but you know up until March, but we're anticipating maybe even an 85% decrease for April.

So we're just hoping to hold on for this year an hopefully come back strong in 2021.

Well, with so much assistance coming down from a trillions, in fact coming down well to all 50 states, but coming from Washington, Arkansas share well over a billion.

I believe.

How much difference has that made Miss McNulty.

Well, the the one point 1 billion that the state God is being used for mostly healthcare an other purposes of our industry has has been a recipient of what other businesses got an opening up in.

Some of the programs to get, but it's it's not enough.

We need more support and as we speak there the The House is considering changes.

She's a federale PPP bill that will really help if that gets through Mishal same question.

Yeah, so we're seeing the same situation.

A lot of our small businesses on the restaurant and even the hotel side were able to utilize some of those programs.

But as montane mentioned, the travel and tourism industry has just been hit extremely hard and a lot of our businesses are saying that they still need additional support because the recovery efforts are obviously a slow process.

Secretary hurts.

We now have a phased in step phase in the governor's directives.

Allowing more and more graduated basis, more and more economic activity, including.

Parks or a key phrase that's emerged over the last month.

His congregants settings.

Now there's been a lot of publicity, a lot of news coverage about people going gathering in large numbers, swimming pools, Lake of the Ozarks.

You've seen all this is their concern.

There that you cannot.

The state cannot adequately cope with that.

Well, there's always a concern, certainly, and we're going to have to all assume personal responsibility for being smart, taking precautions to navigate this.

The spread of the virus.

I will use it as an example or Arkansas State Parks we had at the end of March.

40,000 people on a beautiful Sunday attend our parks and it it they were just too crowded.

Since then we have empowered are.

Park Rangers in our uniform staff to monitor activity and to encourage our visitors to be careful.

So in some settings we simply we simply can't police at all.

But uhm, I think the messages that we all have to learn to live with this virus and be careful.

Take those precautions that we all know wearing mask where needed.

Keep social distance at all times.

And just to be really smart so we can avoid another peak.

Uhm, and continue to reopen safely back to the to the matter of federally, it's been argued in the General Assembly in Congress, in both public and private sectors that in some instances the assistance to the states payrolls have been overly generous, and that employees are very reluctant to return to work because they simply make more money than they were by staying home than they were.

Miss McNulty let me throw.

Go to you first on that.

Yes, that is has had an impact.

It's harder to get the employees back and actually the bill should have been to bring them back at a the choice to bring him back at a later date and hopefully that will be accomplished, but it's it's really a a hard thing.

It wasn't designed for our industry.

Gretchen Hall.

Yes.

So the Little Rock Convention and visitors Bureau we operate several of the large public venues in Little Rock, and unfortunately we did have to furlough a significant number of our staff and that additional unemployment stimulus has been very beneficial for the we're in a little different situation where we're not in a position to bring back our staff yet, and so we haven't had that issue of trying to recall employees at this time.

Your staff, sure, but I mean you interface with the hospitality industry across the hotels, motels, restaurants, bars, Taverns.

Night clubs or what's your response that you picked up?

And we're hearing the same as montane.

Now, many of our restaurants have chosen to continue to only provide takeout and curbside.

There have been a number of restaurants that have reopened for dining in dining service, and so it's kind of a mixed bag of being able to balance that safety and precautions with bringing back employees that are willing to come back into the work environment.

To see if you've got to comment on that, the administrator of the governor, your bosses has commented on that as well.

Well, I think the the federal funding has been of great help to, um, a number of businesses, small businesses, to large businesses.

I do think they're improvements that could be made and hopefully Congress will put those in place as as it regards the 1.25 billion that the state has received.

I think the cares committee continues to look at how to best use that.

The Ready for business brand is now going out.

I think that is has been well received and needed across the state of Arkansas.

And we continue to look at ways that we can be of assistance to businesses that are that are struggling.

We have just seen numbers that within the hospitality and travel sector.

I think the rate of employment is right at 35% right now of unemployment is right at 35% right now, which is by far the hardest hit sector of the economy again.

So it's something that we need to really take a look at because in order to, um, rebound well within the.

Tourism and travel industry.

We have to help these businesses as much as we possibly can in Arkansas.

Some business lobbies is to grant.

Some employers tort liability immunity from litigation arises have arising from Corona virus among their employees.

That's had a natural pushback from the opposite or from labor.

Obviously, miss McNulty.

Are you behind?

Is your organization going to get behind that?

My last understanding is the administration.

Mr Hutchinson has not made a decision yet.

Well, it would be a great release because in some states have acted on that already and maybe we can follow their example.

But it's something that needs to be considered anyway.

Gretchen Hall Sure, you know liability with all of these new changes is obviously.

Our small businesses are very concerned about that and so it doesn't necessarily affect our individual organization.

Where government agency, but for all of our industry partners in the private sector, there certainly concerned about liability factors moving forward in this kind of new normal one.

Of course, many workers organizations argue that such an indemnification would've sensually release employers from from any significant responsibility toward their employees in a time of pandemics.

Actually hurts or any of you.

Want to address that?

It does that it relieve's business employers of their responsibilities.

Well, and I think it certainly needs to be carefully constructed.

But um, debated fully, but it would provide great relief and not just too large businesses, but to Main Street businesses.

Small businesses across the state of Arkansas.

I've even heard concern expressed from some of the faith based organizations that I've worked with on the economic recovery task force.

So I think it's a very timely issue, an it it ought to be fully discussed and debated at the legislative level in Arkansas.

I can tell you from the employer's point of view, their first priority has been the safety of their employees and also that they've been taken care of.

They said that loud and clear.

Any business the first obligation is to remain in business, is it not?

Well it is, but you have to balance that with health and safety too.

Search for some good economic news and I the only one I could find.

The only item I could find was that the rate of applications nationwide for unemployment benefits is starting to tick down a bit.

So my question is, when the dust finally settles if it settles.

How many businesses that are closed?

How many businesses in tourism, hospitality are we likely to lose?

It seems obvious that a great many of already announced that they simply can't come back.

Yes.

Well.

We did a survey that in it said 3% would never reopen.

There's a survey being conducted right now.

Will see how that comes back, but there are a number of businesses that won't survive this.

The feedback that you're picking up.

Sure, during this pandemic we've had eight hotel properties that temporarily closed.

We are anticipating all of those to return to open status and so at this point we're not expecting to lose any lodging establishments.

That's a little different on the restaurant side, so we have well over 500 restaurants in Little Rock, and several have already made public announcements that they will be closing permanently.

There are numerous restaurants that have closed temporarily during this and we.

We do anticipate that some of those will not be able to survive and really be the rate of return to business will be the determining factor there.

Well, as it is for the time being, they are having to all establishments having to socially distance their their customers tables.

Barstool 6 feet apart, etc everyone mask can they can they make it on that for the time being.

You know some can.

In some Canton.

That's why some have chosen to not re open up for in service dining.

So if chosen not to reopen for safety concerns.

But they all have options in there have been several that have done that in a very responsible way and they are being able to manage.

They have larger properties and so the 33% capacity is enough for them to cover their expenses and pay their staff and bring them back on board.

And in many are really working the curbside in the takeout.

Delivery options and being able to to get by.

There's a, you know.

Obviously a tremendous losses in revenue and that will continue for awhile.

But we've seen a lot of community support.

There's been a lot of support from our residents and also businesses supporting each other during this time.

The last word you're situations state situation a little bit different than private enterprise, but you're still under stress.

Yes, I'm well an as it regards our uhm, particularly are.

Restaurants in I'm particularly worried about the lodge is of course in Arkansas.

They contribute so much to our travel industry.

The restaurants seem to have adapted.

The lodges are really struggling.

Many are, you know, at 85% below their normal occupancies.

I can report that are Arkansas State Parks as we have gradually reopen them to overnight visitors, we've seen a really strong response from the public for Memorial Day weekend.

For example, we were at about.

55% occupancy at our lodges across the system, we were at 75% occupancy in our cabins and camping.

Was it about 65%, so I think there is a desire to, um, return to getting out a little bit to traveling an hour at least.

Our initial research indicates that that's where people are going to travel person in a in a rather nearby to their home, but they want to get out.

And, uh, we're being careful to take all the precautions necessary to keep not just our staff safe, but our visitors say so, um, hopefully over the next few weeks we won't see a continued increase and will be able to ease back into, um, more travel in the state of Arkansas.

Gotta end it.

There were out of time.

Secretary Hurst, Mantin McNulty, Gretchen Hall.

Thank you all for being with us and we'll see you next week.

Support for Arkansas week provided by the Arkansas Democrat Gazette.

The Arkansas times and Kuer FM 89.