SANTA FE, N.M. (KRQE) – New Mexico small businesses in financial distress due to the coronavirus crisis are encouraged to apply as soon as possible for loans made available under the federal stimulus bill.
The stimulus bill, or Cares Act, allocates $349 billion for loans to small businesses. But businesses have until June 30 to access the money, and loans will be made on a first-come, first-serve basis.
“This money will go quickly, and New Mexico small businesses must act as soon as possible to obtain loans” Economic Development Secretary Alicia Keyes said Saturday. “Many businesses struggling through this crisis need a financial bridge to help them survive and recover once this crisis eases.”
There are two loan programs for small businesses under the stimulus bill: The Economic Injury Disaster Loan Program and the Paycheck Protection Program.
Small businesses will be able to borrow up to $2 million, with an immediate grant advance up to $10,000 that can be distributed in three days to a business under the Economic Injury Disaster Loan Program. Under the Paycheck Protection Program, a small business can borrow up to $10 million, with an interest rate of 1%. That loan is deferrable for six months.
Small businesses can apply for these loans through the U.S Small Business Administration’s website. Applications can also be made through the SBA’s Small Business Development Centers. There are 19 centers throughout New Mexico and all offer instruction and guidance on how to apply for the loans.
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