by Representative Rebecca Dow - House District 38
On March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses. In addition to traditional SBA funding programs, the CARES Act established new temporary programs to address the COVID-19 outbreak.
I have consolidated information about the coronavirus economic relief options.
Additionally, the New Mexico Small Business Development Centers are hosting twice-a-day live webinars on both the SBA Paycheck Protection Program and the Economic Injury Disaster Loan. You can register for a webinar here: bit.ly/NMSBDCWebinar
The SBA has also developed a Coronavirus Pandemic Loans Comparison Guide: bit.ly/LoanComparisonGuide
Paycheck Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Find Eligible Lenders here: https://www.sba.gov/paycheckprotection/find
For more information click here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Economic Injury Disaster Loan and $10,000 Advance
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan, which includes an advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid, however, the remaining amount of the loan will have a term of up to 30 years, with an interest rate of 3.75% for for-profits and 2.75% for non-profits.
For more information click here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
For more information click here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans
SBA Debt Relief
As part of SBA's debt relief efforts, the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
For more information click here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
Unemployment Insurance Information for Workers Affected by COVID-19
The New Mexico Department of Workforce Solutions has taken administrative actions to support individuals who have been laid off, furloughed, self-quarantined, or have had their hours reduced as a result of COVID-19. Additionally, the federal CARES Act created Pandemic Unemployment Assistance (PUA), which provides supplemental Unemployment Insurance benefits and expands the program to include independent contractors, self-employed or gig economy workers.
For more information please click here: https://www.newmexico.gov/