FOR IMMEDIATE RELEASE
Date: July 7, 2020
Contact: Chris Nordstrum chris.nordstrum@nmlegis.gov, 415-601-1992
Small Business Recovery Act Signed Into Law
(Santa Fe) Today, Governor Lujan Grisham signed Senate Bill 3, the Small Business Recovery Act, into law. The legislation was introduced in the June 2020 special session by Senators Jacob Candelaria (D-Albuquerque), John Sapien (D-Corrales), Sander Rue (R-Albuquerque), and Representatives Marian Matthews (D-Albuquerque) and Daymon Ely (D-Corrales). SB3 provides much needed emergency financial assistance to New Mexico businesses by providing up to $400 million in a new loan fund (run by the New Mexico Finance Authority) for businesses with gross revenues less than $5 million, with an interest rate capped at half of prime. Loans can be up to $75k.
SB3 will help put money back into the New Mexico economy, provide an easy-to-secure loan source for the small business community that employs nearly half of New Mexico’s workforce, and ultimately assist New Mexicans with getting back to work.
This legislation also directs the State Investment Council to invest up to $100 million in a fund for access by city and county governments, also through a low-interest loan program. Qualifying entities will have up to 5 years to pay the loans back.
“Local governments across New Mexico are facing an historic collapse in their revenue,” says Senator Candelaria. “This is not due to overspending or irresponsible politicians. Rather, the economic fallout of COVID-19 now forces cities and counties to face the real threat of deep, deep cuts in basic public services: police, fire, sanitation, early childhood education. This bill doesn’t solve the problem, but it will provide an important source of emergency cash to local governments as we continue to ride these turbulent economic waves.”
In addition to the loan programs, this bill puts a temporary freeze on unemployment insurance rate increases, thus protecting New Mexico businesses from skyrocketing increases in unemployment insurance due to the massive unemployment rates resulting from the pandemic.
For more information and details on the program, as well as to sign up for updates as more information is available, visit the New Mexico Finance Authority website at nmfa.net.
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