All Corrales businesses would probably qualify for financial help to weather the strains caused by the virtual shut-down of commerce due to the coronavirus pandemic.
The federal economic stimulus program launched by Congress’ CARES Act last month allocates $349 billion for loans across the nation which may not need to be repaid.
Deadline is June 30.
“This money will go quickly, and New Mexico small businesses must act as soon as possible to obtain loans,” the State’s secretary of Economic Development, Alicia Keyes, advised April 4. “Many businesses struggling through this crisis need a financial bridge to help them survive and recover once this crisis eases.”
Two programs rolled out this month could help: the Paycheck Protection Program and the Economic Injury Disaster Loan Program. Under the latter, a small business with under 500 employees can borrow up to $2 million, with an up-front grant of up to $10,000 presumably available within three days of approval.
Those loans can be requested through the U.S. Small Business Administration website disasterloan.sba.gov/ela/
Under the Paycheck Protection Program, a business can borrow up to $10 million with an interest rate of just 1 percent. The loan is deferrable for six months. And the loan will be forgiven entirely if the business keeps all employees on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest of utilities.
An application for such a loan/grant should be made through the business’ local bank or other lender. For more information, see http://www.sba.gov/paycheck protection. gov.
Grants or loans will be made on a first-come, first-served basis, so funds may be depleted quickly.