Economic Recovery Council urging small businesses to apply for loan program

Coronavirus New Mexico

SANTA FE, N.M. (KRQE) – Governor Michelle Lujan Grisham’s Economic Recover Council is urging small businesses hit hard by the coronavirus public health emergency to apply for the emergency loan program.

“This is a great opportunity for businesses to get some critical help that could make the difference in being able to navigate through this very difficult period,” said Economic Recovery Council Chairwoman Christina Campos in a news release from the governor’s office. “It’s so important for our recovery that our state’s small businesses get through this.”

The governor’s office said in the same news release Tuesday, the emergency loan program is now available through the New Mexico Finance Authority and the Small Business Recovery Act of 2020 set aside $400 million from the New Mexico’s Severance Tax Permanent Fund to provide loans to New Mexico businesses and nonprofits that have experienced financial hardship during the pandemic.

“This is a program that is especially beneficial for small businesses that may not have been able to access federal relief or who need more flexibility. We’d love to see more businesses take advantage of what is available,” said Councilmember Jason Sandel in the news release.

The governor’s office said businesses may be eligible for loans of up to $75,000 and do not require a personal guarantee or collateral and carry an interest rate currently set at 1.625 percent, fixed for the life of the loan. The loans can be used to cover rent, payroll, and other expenses.

Among other criteria, to be eligible, applicants:

  • Must be a New Mexico business or a nonprofit corporation organized under Section 501(c)3 or 501(c)6 that has closed or reduced operations due to the public health order, and
  •  Had annual gross revenue of less than $5 million as determined by its 2019 federal income tax return or Form 990, and
  • Experienced a 30% decline in monthly gross receipts or monthly revenue in April and May of 2020 as compared to the same months in 2019.

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