Businesses, nonprofit organizations, self-employed, and sole proprietors have until mid-May to apply for a first or second draw PPP loan. The program has been extended to May 31; however, because participating lenders need time to process applications, potential borrowers should apply by May 15.

First-time borrowers may apply for up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year. Hotels and restaurants can get up to 3.5 times their average monthly payroll costs. Self-employed individuals can use their gross income to determine their eligible loan amount. Nonprofit organizations (including 501c6 entities) and independent contractors are also eligible to apply.

Qualified previous PPP borrowers that can demonstrate a 25 percent gross revenue decline in any 2020 quarter compared with the same quarter of 2019 are eligible to apply for another loan of up to $2 million. These “second-draw” borrowers should apply through the financial institution that facilitated their first loan.

The PPP carries an interest rate of 1 percent, with the principal forgivable under specific circumstances.

Apply through your financial institution or one of these New Mexico lenders that are accepting applications:

• DreamSpring (serves all of New Mexico)
• LiftFund (serves Southern New Mexico counties)
• RCAC (serves rural communities under 50,000 population)
• Century Bank (Albuquerque, Rio Rancho, Las Cruces, Santa Fe, Espanola, Los Alamos)