KOB Web Staff
Updated: July 07, 2020 01:42 PM
Created: July 07, 2020 01:19 PM
ALBUQUERQUE, N.M. — New Mexico Gov. Michelle Lujan Grisham signed the Small Business Recovery Act of 2020 Tuesday. Nearly half a billion dollars will be made available to help New Mexico small businesses recover financially from COVID-19.
The measure allocates $400 million for loans to small businesses and nonprofits and almost $50 million for loans to local governments. The money comes from the state's $5 billion Severance Tax Permanent Fund
“Small businesses are the backbone of New Mexico’s economy and the lifeblood of our communities. They’ve suffered greatly from this unprecedented pandemic emergency, and our state and our economy suffer with them,” Lujan Grisham said. “I will fight for small businesses and their recovery every single day and this measure, putting our state’s wealth to work in getting them back on their feet, is a significant step in the right direction.”
Officials say those who are eligible for loans may borrow two times their average monthly expenses up to a maximum of $75,000.
The measure sets the interest rate at one-half the prime rate on the day the loan is made. The initial loan period is three years.
The legislation was sponsored by Sens. John Sapien, Jacob Candelaria, Sander Rue and Reps. Marian Matthews and Daymon Ely. It passed the Senate 26-11 and the House 59-5 during the special legislative session in June.
The New Mexico Finance Authority will administer the program. For more information about the loans, click here.
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