More Flexible Spending, Dollars Set Aside for First-Time Borrowers
SANTA FE, N.M. – The New Mexico Economic Development Department (EDD) is partnering with the N.M. Small Business Development Center, the U.S. Small Business Administration and the Office of Gov. Michelle Lujan Grisham to host a webinar on the new Paycheck Protection Program (PPP) loan application, which reopens this week.
EDD encourages all business owners who still need PPP assistance to apply for the new round of money from the U.S. Small Business Administration (SBA). A total of $284 billion is available nationwide, with $35 billion specifically for first-time PPP borrowers.
Some 23,000 businesses in the state have already received PPP loans totaling $2.3 billion. The average employee count for the loans is 11 and the average N.M. loan is $98,630.
“The new PPP loan program allows for more flexibility in how loan dollars are spent and sets aside money for first-time businesses owners new to the program,” EDD Cabinet Secretary Alicia J. Keyes said. “Businesses who need this assistance should register for the EDD webinar and get with a lender who can submit an application as soon as possible.”
The SBA will begin processing new PPP loans this week with the first draw restricted to businesses that have not yet received PPP assistance. The first applications are also being restricted to Community Development Financial Institutions (CDFIs), which target lending to the most needy communities and business owners who may not have a banking relationship.
Three CDFIs are currently taking applications from New Mexico:
Business owners in need of free assistance with the loan application, or seeking advice about all SBA assistance and loan programs, should register for an advisory session with the New Mexico Small Business Development Center (NMSBDC), nmsbdc.org.
The NMSBDC network has locations in 20 communities throughout the state and provides free assistance to small businesses and entrepreneurs. The office can be reached at 1-800-281-7232. Due to office closing during the health emergency, those needing help are asked to go online first to register.
All other lenders will be able to help with applications “shortly thereafter,” according to the U.S. Small Business Administration, but a specific date has not yet been determined. The application process is open until March 31, 2021 or until the $284 billion authorized for the program is exhausted.