A recent webinar provided an overview of the changes authorized by the New Mexico Legislature when it expanded and extended the Small Business Recovery Loan Fund to better help businesses experiencing financial hardship caused by the pandemic. Among the changes: More businesses are now eligible to apply for a loan, and the loans have more favorable and flexible terms. Businesses that received a Small Business Recovery Loan in 2020 will be able to refinance for a longer-term or a larger loan. 

The Small Business Recovery Loan Fund opened in 2020 with eligibility tied to revenue loss during one quarter in 2020 compared to the same quarter in 2019. Many businesses were shut out by the criteria or the deadline, which closed the program on December 30, 2020. Changes made by the legislature during the first regular session of 2021 expanded the eligibility criteria and infused the fund with additional capital. The Small Business Recovery Loan Fund is slated to reopen on May 4.

The new $500 million loan fund offers loans up to $150,000 at a current interest rate of 1.625%, terms up to ten years, no payments due the first year, interest-only payments due in the second and third year, and no penalty for paying off a loan in advance. Businesses that received a Small Business Recovery Loan in 2020 are eligible to reapply for additional funds or to update their current loan terms to take advantage of the new terms.

The webinar discussed eligibility, loan terms, how to apply, how to refinance an existing loan, required documents, and more. New Mexico Finance Authority chief executive officer Marquita Russel and Adam Johnson, chief of program operations, led the webinar. View the slide deck here.

More eligibility criteria have been added to the website, along with definitions, FAQs, and loan amounts.

Apply for the New Mexico Small Business Recovery Loan here between May 4, 2021, and May 31, 2022, or until the loan fund is depleted.