Demand Rises For Pandemic New Mexico Small Business Loans | national news


FILE – In this March 30, 2021 file photo, President Joe Biden speaks after signing the PPP Extension Act of 2021, in the Oval Office of the White House in Washington. The government’s key small business COVID-19 relief program is strapped for cash. The Small Business Administration said Wednesday, May 5, that the paycheck protection program has run out. As of Sunday, the PPP had granted nearly 10.8 million loans worth more than $ 780 billion since April last year.

Evan vucci

By MORGAN LEE Associated Press

SANTA FE, NM (AP) – New Mexico state financial authorities have said demand appears to be increasing for minimum interest loans aimed at helping small businesses that have lost income or experienced major disruption during the coronavirus pandemic.

New Mexico Financial Authority CEO Marquita Russel told a panel of state lawmakers on Wednesday that about 865 companies have applied for loans worth a combined $ 65 million since the overhaul of the program in March.

Reforms to the state’s small business stimulus loan program, signed by Democratic Gov. Michelle Lujan Grisham in early March, doubled the maximum individual loan amount to $ 150,000 and expanded eligibility after businesses expressed a limited appetite for the initial program.

“This program, as a result of the changes to it, has been really successful and we’ve seen a lot of interest,” said Russel.

The federal government has ended its paycheck protection program which provided forgivable loans to businesses as of April 2020. Restaurants are still awaiting federal assistance under the assistance program. $ 1.9 trillion Biden administration coronavirus.

New Mexico small business turnaround loans are repaid at half the prime interest rate commercial banks charge their most creditworthy customers, with no interest accrued in the first year. Repayment installments are not due for the first three years.

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