Small Business Recovery Loan Fund Is Open For Applications

Created by the Small Business Recovery Act of 2020 (June 2020 Special Session) and signed into law by Governor Michelle Lujan Grisham on July 7th.

The $400 million program provides low-interest loans to businesses that are experiencing financial hardship due to the public health order resulting from the COVID-19 pandemic.

The three-year loans may be used for a variety of expenses, do not require personal guarantees or collateral, and have no payments for the first year.

Please note that this is a loan program, not a grant program.

APPLY HERE

Application Tips – You will need the following documents in an electronic file format:

Required Documents for For-Profit Businesses:

• Federal Tax Returns for Taxable Year 2019
• Sole Proprietors – 2019 IRS Form 1040 Schedule C
• Partnerships, LLC’s & LLP’s – 2019 Form 1065
• S corporations 2019 IRS Form 1120S
• C corporations 2019 IRS Form 1120
• Copies of CARES Act loan amounts received by the business, if any
• Combined Reporting System (CRS) reports for gross receipts collected in April 2019 & May 2019
• Combined Reporting System (CRS) reports for gross receipts collected in April 2020, and May 2020
• Copy of NM Personal Income Tax return of business owners to evidence NM residency

Required Documents for Non-Profit Organizations:

• Monthly Income Statement/Profit & Loss report for tax year that includes April and May 2019
• Monthly Income Statement/Profit & Loss report for tax year that includes April and May 2020
• IRS Form 990 for the tax year or years that include April and May 2019
• Annual Income Statements/Profit & Loss for the tax year that includes April and May 2019
• Copies of CARES Act loan amounts received by the business, if any
• Signed Certification of the financial statements are true and accurate, and consistent with IRS Form 990 (Signed, electronically or physically, by the Executive Director, CFO, independent accountant or board officer)

Other important things to know:

• The application cannot be saved and finished later, so please have your required documents in an electronic format before you start.
• Applicants will need to provide their checking account information in the online application to receive the loan funds. If you do not have a checking account, you will need to open one before applying to the Small Business Recovery Loan Fund.
• The application will take approximately 30-60 minutes to complete.
• For more information, please visit www.nmfinance.com.

What businesses are eligible to apply?

• A New Mexico business or nonprofit corporation organized under Section 501(c)3 or 501(c)6 that has closed or reduced operations due to the public health order, and
• Had annual gross revenue of less than $5 million as determined by its 2019 federal income tax return or Form 990, and
• Experienced a 30% decline in monthly gross receipts or monthly revenue in April and May of 2020 as compared to the same months in 2019

What are the loan terms?

• Loan Amount: Two times the average monthly expenses, not to exceed $75,000.
• Interest Rate: 1/2 of Wall Street Journal prime rate (currently 1.625%).
• Collateral: None. Personal guarantees not required.
• Terms: 3-year loans. Interest only, paid annually. Principal due at maturity. Loan may be extended for an additional three years with monthly principal and interest payments.

The application will open online on August 5 and will be open until December 31, 2020 or until funds are gone, whichever comes first.

Applications will be processed on a first-come, first-served basis.

New Mexico Finance Authority
207 Shelby Street, Santa Fe, NM 87501
505-984-1454
recovery@nmfa.net
www.nmfinance.com

NMHA applied for this today, and the process is really simple (just have all your documents ready to upload)!