SANTA FE, N.M. (KRQE) – The Small Business Recovery Loan Fund for small businesses in New Mexico is now open. The Small Business Recovery Ac of 2020 sets aside $400 million in funds from the New Mexico State Severance Tax Fund in order to provide loans to businesses and nonprofits that have experienced financial hardship as a result from the COVID-19 pandemic.
Senators John Sapien, Jacob Candelaria, and Sander Rue, and Representatives Marian Matthews, and Daymon Ely sponsored the bipartisan legislation in the June special legislative session. Eligible businesses and nonprofits can borrow two times their average monthly expenses up to a maximum of $75,000.
The interest rate is set 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.
This 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% or more compared to the same month in 2019. Additional information and the online application can be found at nmfinance.com.