Update: Help for Businesses Negatively Impacted by the COVID-19 Health Emergency
The State of New Mexico is adjusting its business-loan guarantee programs in order to make capital more available to business owners whose operations are severely impacted by the COVID-19 health emergency.
COVID-19 Business Loan Guarantee Program
The New Mexico Economic Development Department (NMEDD) has created a program to assist businesses seeking emergency loans or lines of credit to deal with negative economic impacts from COVID-19. NMEDD can guarantee a portion of a loan or line of credit up to 80% of principal or $50,000. Loan proceeds are flexible and can be used for (and not limited to) the following: working capital, inventory and payroll.
Process:
Borrower approaches lender
Lender applies to the program
Lender and NMEDD sign agreement
Lender makes the loan
NMEDD guarantees the loan in case of default
Lenders and borrowers can apply here.
LEDA Zero-Percent Interest Loans
Limited to expenditures for land, building and infrastructure
Can be used for lease abatement or mortgage assistance
Company must be a qualified entity (manufacturer, non-retail service business with more than 50% of revenue generated out of state, or a retail business in a community or less than 15,000 in population)
All loans will be required to provide security equal to the amount of the loan
For assistance with LEDA loans, find & contact your Regional Representative, or contact Mark Roper, Mark.Roper@state.nm.us or 575.562.0327
New Mexico Finance Authority: Business Loan Partnership Program
NMFA and “Partner Banks,” together, share risk while lowering the overall cost of borrowing for the business by NMFA offering low-cost rates on its portion of the loan to a New Mexico business.
Contact, John Brooks, 1-877-ASK-NMFA, or jBrooks@nmfa.net
Federal Assistance
On March 12th the Small Business Administration (SBA) announed up to $2 million in disaster assistance loans. These are low interest loans that may be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact. More information from the SBA.
The SBA disaster assistance customer service center can be reached at 1.800.659.2955 (TTY: 1.800.877.8339) or email disastercustomerservice@sba.gov.
SBA International Trade Assistance:
Contact Edward Herrara, 505.670.5957 or Edward.Herrera@state.nm.us.
Links:
SBA Guideance for Businesses and Employers to Plan and Respond to Coronavirus Disease
CDC Interim Guidance for Businesses and Employers
The International Economic Development Council teaches a class and has published an extensive guide for communities in crisis. Download the Guide
