SANTA FE (KSMX)- Tuesday, Governor Michelle Lujan Grisham announced its qualification for the Small Business Administration (SBA) Disaster Loan Assistance program to assist businesses negatively impacted by the COVID-19 public health emergency.
According to a press release:
The SBA is offering low-interest federal disaster loans up to $2M for working capital to small businesses and non-profit organizations suffering substantial economic injury as a result of COVID-19.
“We are dedicated to assisting every business that we can to endure the significant hardship this emergency has already caused,” Lujan Grisham said. “This SBA loan program is one of several tools to help businesses remain resilient and continue servicing their communities into the future.”
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
“The economic well-being of all New Mexicans affected by this disaster is our number one priority,” Alicia J. Keyes, Economic Development Department Cabinet Secretary, said. “We’re proud that New Mexico is one of the first states to announce the availability of this loan program statewide.”
The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.