$400 million in loan funds now available for New Mexico small businesses
SANTA FE – The Small Business Recovery Loan Fund for New Mexico small businesses opened on August 5, Gov. Michelle Lujan Grisham announced Wednesday.
The online application is available at http://www.nmfinance.com.
The Small Business Recovery Act of 2020 allocates $400 million in funds from the New Mexico State Severance Tax Fund to provide loans to New Mexico businesses and nonprofits that have experienced financial hardship due to the public health order resulting from the COVID-19 pandemic.
“This is a cornerstone of our state’s response to the economic crisis unleashed by the COVID-19 pandemic,” Gov. Lujan Grisham said. “Businesses across our state have suffered as a direct result of the public health emergency – customers are concerned about safety, employees are worried about their well-being and our economy has been battered. The state’s wealth can be put to no better purpose right now than the assistance of so many dedicated business-owners, whose lives and livelihoods have been upended, who have done everything they can to keep customers and workers and our communities safe. I will continue to deliver everything in my power to New Mexicans who continue to fight this virus and work to stay afloat.”
The bipartisan legislation was sponsored by Sens. John Sapien, Jacob Candelaria and Sander Rue and Reps. Marian Matthews and Daymon Ely in June’s special legislative session.
“When times are tough, we pull together and invest in ourselves to get through,” said Sen. Candelaria. “The Small Business Recovery Act loan program directs funds belonging to New Mexicans to help small business across our state weather this economic storm, and hopefully come out stronger on the other end.”
“It's an honor to have been a sponsor of the $400 million investment in our hard-working New Mexico small businesses,” said Rep. Matthews. “With the help of the loans, our small business owners will create jobs and survive the most challenging business environment we’ve ever seen. Our job now is to help them help all of us by buying – compra – local!”
Eligible businesses and nonprofits may borrow two times their average monthly expenses up to a maximum of $75,000. The measure sets the interest rate at one-half the prime rate on the day the loan is made. The initial loan period is three years, with interest-only payments for the first three years.
The loan program is limited to businesses and nonprofits with 2019 annual gross revenue of less than $5 million and whose 2020 April and May income dropped 30 percent or more compared to the same month in 2019.
The New Mexico Finance Authority is administering the Small Business Recovery Loan Fund.
The online application and more information on the program can be found at www.nmfinance.com.
Businesses seeking additional information and assistance through programs made available by the state of New Mexico may dial the state’s COVID-19 non-emergency information hotline at 833-551-0518 and select option 2. They may also visit gonm.biz.