When the first wave of coronavirus hit the United States in early 2020, Arian Gonzales and her husband, Richard, didn’t know how the pandemic would affect their 20-year-old Albuquerque company and the employees who produce its award-winning salsas.

Fearful that Cervantes Food Products Inc. would be forced to halt production for two months and that they would lose their five employees, the couple contacted DreamSpring—a multi-state community development financial institution (CDFI) based in New Mexico—to apply for a Payroll Protection Program (PPP) loan.

The emergency loan allowed the Gonzaleses to keep paying their employees while the company spent available cash stocking up on jars, lids and other packaging that was expected to become scarce. And it’s a good thing they did because the company was deemed “essential manufacturing” under Gov. Michelle Lujan Grisham’s emergency order, and demand for its products quickly skyrocketed.

Online orders, 90 percent of which originate outside New Mexico, tripled, and regional grocers, food clubs, and other retailers doubled their standing orders.

Arian attributes the increased demand to sequestered people preparing more home-cooked meals. “People aren’t interested in buying four jars at a time now,” she said. “They’re buying 12 jars at a time—and multiple flavors. People are reaching out to find those flavors they grew up with or have fond family memories of.”

Ramping up production required Arian to draw on longtime relationships with local, family-owned farms to ensure growers could supply a greater volume of raw materials when she needed them.

Knowing DreamSpring’s focus on client relationships also mattered when it came to having confidence that a loan was within reach. DreamSpring has helped the Gonzaleses obtain three other loans over the years, and Arian has served on several of the nonprofit’s client committees. Even though the couple could borrow money from more traditional institutions given the company’s successful track record, Arian feels the bond she has with DreamSpring is one of reciprocal loyalty.

“We’ve been in business over 20 years now, we’re definitely bankable and we have other banking relationships,” she said. “It’s the feel of family that makes me want to work with DreamSpring even more.”

This support was essential during the chaotic PPP rollout, when loan provisions were vague and it wasn’t clear whether the U.S. Small Business Administration would require repayment even when the funds were used for the intended purpose of helping small businesses sustain payroll.

“DreamSpring offered training and I signed up for all of it,” Arian said. “That’s the value of having knowledgeable partners. This PPP money is earmarked strictly for employees, and that’s where it went.”

DreamSpring’s Relief and Recovery Fund resulted in PPP loans for more than 1,700 businesses. These SBA-backed loans exceed $54 million and helped hard-working entrepreneurs preserve some 8,700 jobs.

“They’re so supportive of what we do,” Arian said of DreamSpring. “They have been in my corner.”

For that reason, she recommends DreamSpring to other business owners who need money quickly. “As entrepreneurs, we don’t have the ability to wait four to six weeks for a loan approval. We need the money in a week to 10 days.”

DreamSpring offers a wide range of small-business loan options, including lines of credit, all buoyed by support. Find more information about DreamSpring. And click here to order from Cervantes Food Products.

Finance New Mexico article 667 updated 3.1.22