The application process opened on Monday for midsize businesses to apply for state emergency loans in the context of the COVID-19 health crisis.
Under the New Mexico Stimulus Fund program, businesses with 40 or more employees can now apply for loans starting at $ 500,000 with interest rates between 3% and 10%, the company said on Monday. state economic development department.
Companies applying must have suffered “substantial negative impacts from COVID-19”, must commit to retain “as many employees as possible” during the life of the loan, and must promise to spend at least 80% of the proceeds of the loan in the state, the agency said.
“The state is seeking to do all it can to help businesses weather this crisis and save jobs,” Economic Development Secretary Alicia Keyes said in a statement.
Last week, the State Investment Council approved guidelines for the stimulus fund, which will allocate $ 100 million from the New Mexico Permanent Severance Tax Fund to help midsize businesses.
Santa Fe investment firm Sun Mountain Capital, which has managed the State Investment Council’s equity co-investments since 2006, oversees the fund.
In a two-step process, companies must first complete a questionnaire to sunmountaincapital.com. If they meet the qualifications, they will be invited to complete a formal submission.
Governor Michelle Lujan Grisham told members of the State Investment Council last month that the fund is intended to ensure that “we are doing everything we can to minimize, mitigate or redirect the real economic damage from COVID-19 “.
Businesses can also use the loans as a gateway to longer-term financing that can be obtained from the Federal Small Business Administration through the multibillion-dollar economic stimulus package recently approved by Congress.
On March 24, Lujan Grisham announced restrictions that shut down all but essential services in New Mexico. His administration has since ordered the closure of more businesses, such as liquor stores, car dealerships and payday loan companies, as well as limiting the capacity of big box stores and grocery stores that remain open. .