SANTA FE, N.M. (AP) – A bill is being submitted to the governor’s desk that would provide minimum-interest loans to companies in New Mexico that lost income in 2020 amid the pandemic and emergency health restrictions.
The state council voted Thursday 51 to 17 to approve a bill that expands eligibility for loans that will be underwritten by a state multi-billion dollar fund for infrastructure projects.
It would authorize loans of up to $ 150,000 for small businesses at subprime rates of less than 2% annual interest with a repayment term of up to 10 years.
These terms are more generous to borrowers than the original relief program, which provided about $ 40 million in loans last year. Previous borrowers can apply for refinancing under the new terms and new loans of up to $ 75,000 can be issued without collateral in the event of default.
The main sponsor, Senator Jacob Candelaria, from Albuquerque, says the law is crucial to making aid funds more accessible to companies for a prolonged recovery period.
Loan disbursements of up to $ 460 million would be staggered through May 31, 2022.
Democratic Governor Michelle Lujan Grisham expressed support for the proposal.