NEW MEXICO (KRQE) – The New Mexico Economic Development Department provided an update Friday on the new Paycheck Protection Program (PPP) loan application. The PPP loan application will reopen to all lenders on January 19, 2021. According to a news release, 23,000 businesses in the state have already received PPP loans totaling $2.3 billion. It also states the average employee count for the loans is 11 and the average New Mexico loan is $98,630.
Required documents for first time PPP applications:
- Payroll report for 2019 (if applicable to your business)
- 2019 Schedule C – self-employment tax form (if applicable to your business)
- Any 1099s you received for 2019
- Quarterly Payroll Tax form 941 for every quarter of 2019 or the 944 Annual Payroll
- tax form (if applicable to your business)
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, and other types of organizations
- The PPP provides greater flexibility for seasonal employees
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will, or has, used the full amount only for authorized uses;
- Has no more than 300 employees
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The New Mexico Economic Development Department partnered with the N.M. Small Business Development Center, the U.S. Small Business Administration and the Office of Gov. Michelle Lujan Grisham to host the webinar.