WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.) is urging New Mexico small business owners and nonprofits affected by the COVID-19 pandemic to apply for funding through the U.S. Small Business Administration (SBA) Paycheck Protection Program before the deadline on Tuesday, June 30. These loans are fully guaranteed by the SBA, and can be forgiven if small businesses meet certain requirements, including utilizing 60% of the loan for payroll.
“The economic relief measures we passed in the CARES Act funds grants and loans from the SBA to provide essential support for New Mexico small businesses and nonprofits to keep their employees on payroll and cover their expenses,” said Heinrich. “The funding for this assistance is still available, and lenders across New Mexico are ready to process applications. I encourage small business owners in need of assistance to connect with their preferred lender and get started on an application before the deadline. In the days and months ahead, I remain committed to rebuild thriving businesses and local economies across our state.”
The Paycheck Protection Program (PPP) is a government loan intended to provide small businesses the ability to keep employees on payroll. The CARES Act increased the government guarantee of loans made for the PPP under section 7(a) of the Small Business Act to 100% through December 31, 2020. Small businesses, nonprofits, and veterans organizations with 500 employees or less are all eligible to apply for PPP assistance. To qualify for loan forgiveness, recipients must spend the loan within 24 weeks of receiving funding. Additionally, 60% of the loan must be used on payroll to qualify for forgiveness, leaving 40% available to cover costs including rent, mortgage payments, utilities, and interest on loans.
Small businesses and nonprofits are encouraged to reach out to their preferred local bank, credit union, Community Development Financial Institution, or Small Business Development Center to begin an application. Eligible lenders can be found through the SBA’s website. To view other opportunities available for small businesses, visit Senator Heinrich’s Coronavirus Resource page.