COVID-19 Financial Assistance to help businesses through the crisis.
Everyone wants your business to succeed while it faces the COVID-19 crisis and recovery. The Finance New Mexico project will continuously update this page with information as it is released.
You can also find information at the New Mexico Economic Development Department and its COVID-19 response webpage. The State of New Mexico also has a continually updated webpage called Jobs & The Economy with information for all New Mexicans.
Questions? The Economic Rapid Response Taskforce, a collaborative between the Economic Development, Workforce Solutions, and Tourism departments, has set up a clearinghouse to enhance communications. Submit business questions, challenges and feedback through the Business Rapid Response Online Submission Form.
For updates about temporary programs and resources, subscribe to the Finance New Mexico newsletter. Just fill out the form on the home page.
FIRST RESPONSE
While some businesses were impacted immediately, others are just beginning to see negative effects of the pandemic. If your revenue is decreasing and you currently have a loan or line of credit, contact your lender. Be honest about your situation and find out if your loan terms can be temporarily adjusted to help you through the situation. Contact your credit card bank for details about what it can offer. If you lease your building, talk with your landlord about working with you on deferred payments. Banks that are designated SBA lenders may be able to offer a $25,000 SBA Express Bridge Loan to a business that already has an SBA relationship or existing loan.
FEDERAL CARES Act LOAN RESOURCES
- Paycheck Protection Program (PPP): Forgivable loans intended to keep employees on the payroll. This program expired on August 8, 2020, however, Congress may reauthorize it in new legislation. Loan forgiveness applications will be accepted until December 31, 2020. Read the details.
- SBA Economic Injury Disaster Loan (EIDL): Loans for businesses suffering substantial economic injury as a result of the COVID-19 public health emergency. Businesses are eligible for a 3.75 percent interest loan of up to $2 million to pay operating expenses such as payroll, mortgages, accounts payable and other bills. The interest rate for qualifying nonprofits is 2.75 percent. New Mexico’s Small Business Development Centers have offered to help businesses with the paperwork.
- Main Street Lending Program: The CARES Act authorized $75 billion for this program that provides five-year loans of $250,000 or more to qualified businesses that were in sound financial condition prior to the pandemic but now need financing to maintain operations. Interest is set at LIBOR plus 3 percent, with interest payments deferred for one year and principal payments deferred for two years. Borrowers must apply through a participating lender. In New Mexico, Century Bank participates in the program. Find others here.
- USDA Rural Development B&I CARES Act Program: Rural businesses and nonprofits that were in operation Feb. 15, 2020, can apply for a Business & Industry CARES Act loan. Rural is defined as areas outside of a city or town with a population of fewer than 50,000 people, although a business’s headquarters may be located in a city if the project is in an elgible rural area. Interest may be fixed or variable, and interest payments may be deferred in the first year; principal payments may be deferred for up to 3 years. This loan must be facilitated by a USDA-RD-approved lender by Sept. 15, 2021. Contact the New Mexico office for guidance.
NEW MEXICO LOAN RESOURCES
New Mexico Recovery Fund: The New Mexico State Investment Council has created a $100 million emergency business loan program, managed by Sun Mountain Capital, for businesses with 40 or more employees. New Mexico businesses that were credit-worthy prior to the pandemic may apply for loans, starting at $500,000, with interest rates between 3% and 10%. The NM Recovery Fund is aimed at companies: with substantial negative impacts related to COVID-19; that demonstrate an intent to retain as many employees as possible over the life of the loan; and that will commit to spending at least 80% of loan proceeds in New Mexico (spending 100% of loan proceeds in New Mexico preferred). Information and eligibility questionnaire are at Sun Mountain Capital.
Enhanced Existing Loan Programs aim to meet the new needs presented by the crisis. The New Mexico Small Business Investment Corporation has committed an additional $35 million at low interest rates to assist small businesses impacted by COVID-19. (Also see our Capital page for ongoing loan, grant and equity programs.) Emergency business loans are available through NMSBIC lending partners:
- The Loan Fund
- DreamSpring
- LiftFund
- Homewise (commercial loans only; home loans not eligible for NMSBIC funds)
Essential Services Working Capital Program: Dentists, pharmacies, childcare facilities and health providers are eligible to apply for a 6-month, 1% line of credit or a low-interest 5-year term loan of up to $1 million for operating expenses such as payroll, purchase of supplies, rent, and mortgage. The New Mexico Finance Authority has made $12 million available for this program, which will end when the funds are depleted. For-profit and nonprofit “essential” organizations should apply by the third Friday of each month. Application information is here.
New Mexico Small Business Recovery Program: New Mexico businesses and nonprofits that reported less than $5 million in gross revenue on their 2019 income tax return and experienced 30 percent or greater reduction in monthly gross revenue in April and May of 2020 (compared to the same period in 2019) can apply for a low-interest, three-year loan of up to $75,000. Principal can be deferred for the entire three-year term, after which principal and interest can be paid in full or converted into a new three-year loan that requires monthly payments of principal and interest. This loan program was enacted by the New Mexico Legislature during the June, 2020, Special Session and signed by Gov. Lujan Grisham on July 7. Applications will be processed on a first-come first-served basis from Aug. 5 through Dec. 31, 2020, or sooner if the funds are depleted. Apply through the New Mexico Finance Authority.
REGIONAL LOAN RESOURCES
Working Now Revolving Loan Fund offers loans from the North Central New Mexico Economic Development District using funds provided by a grant from the U.S. Economic Development Administration. These are small loans of up to $10,000 aimed at businesses that are affected by the pandemic and are located in the counties of Colfax, Los Alamos, Mora, Rio Arriba, San Miguel, Santa Fe, or Taos. Interest is deferred for 6-months, and loans are secured by a personal guarantee rather than collateral. Apply through the NCNMEDD.
Other Local and Regional Loan Programs have been announced by regional economic development alliances and local governments. They will be added here when details are availabe. If a previously listed program is no longer here, it is because the program expired.
EMERGENCY GRANTS
New Mexico Small Business Continuity Grants are being offered to pandemic-impacted businesses in specific municipalites, counties, and tribal governments. Eligible businesses with less than $2 million in annual revenue and fewer than 50 full-time employees may use the grant for Business Continuity expenses (such as non-owner payroll; rent or mortgage; insurance; utilities, marketing) and Business Redesign expenses (installing plexiglass barriers, temporary structures and physical space reconfiguration to mitigate the spread of the virus; purchases of PPE and web conferencing technology.) Most grants are $5,000 to $10,000. We are monitoring municipal and county websites for local information and application links. Download the list updated 10/28/20.
Other Local Grant Programs have been announced and will be added here when details are availabe. If a previously listed program is no longer here, it is because the program expired.
The Grant Plant has an extensive list of emergency grants. While most pertain to qualified nonprofit organizations and individuals in the creative sector, it’s worth perusing the list to determine if something is applicable to your specific circumstances.
OTHER ASSISTANCE
New Mexico Tax & Revenue Dept. has been authorized by the New Mexico Legislature to waive late fees on business taxes such as withholding and compensating taxes, but taxes must be filed by their regular filing deadlines. Read the press release and the other notices posted here by the department.