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