Udall: Eligible New Mexico Small Businesses and Nonprofits Encouraged to Apply for Loans Following Final Passage of Bill to Replenish Small Business Funds in CARES Act

Press Release

Today, U.S. Senator Tom Udall (D-N.M.) hailed the increased funding to community-based banks and lenders in the emergency spending package that passed the House and Senate earlier this week and was signed by the president today. Udall fought to secure $120 billion in loans for Community Development Financial Institutions, community lenders and smaller banks in the funding package to help small businesses in small or underbanked communities in New Mexico access low-interest emergency loans. Many of these small businesses are minority, women, or veteran-owned businesses that faced hurdles accessing the Paycheck Protection Program (PPP).

The recently-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act created a funding pathway for small business aid -- including up to $10 million in PPP loans for each small business and non-profit of up to 500 employees. The loans will be converted to forgivable grants, so long as employers maintain their previous payroll through June 2020. The loans will be implemented by the Small Business Administration's (SBA) existing 7(a) program, operating through existing relationships with banks and credit unions.

This week, the House and Senate unanimously passed an additional $310 billion emergency spending package to replenish the Paycheck Protection Program, with additional relief options for small businesses and non-profits are also included in the CARES Act, and the president signed it into law. The new bill that supplements the CARES Act sets aside $30 billion of loans for banks and credit unions with $10 billion to $50 billion in assets, and another $30 billion for even smaller institutions. The bill also includes $60 billion in loans and grants under a separate SBA Economic Injury Disaster Loan (EIDL) program, and makes farms and ranch businesses are also eligible for the loans.

"Our 150,000 small businesses in New Mexico are the heart of our economy. They are understandably worried not just about the health and safety of their employees but also their ability to make payroll and pay other bills," Udall said. "The PPP program has been a lifeline but the initial funds failed to reach many smaller and minority-owned businesses, and that's why I worked to secure $120 billion so that more small business owners, especially those in underserved, underbanked communities in New Mexico and on Indian lands will be better able to access funds by community-based lenders. I also fought to make sure that New Mexico's farmers and ranchers--who not only contribute to our economy but also feed our state and nation--are eligible for these loans. I encourage all New Mexico small business owners to apply for the newly-accessible loans to help weather this crisis. But our work isn't done--I will keep fighting to make sure that New Mexico's small businesses and working families stay healthy and financially afloat during this challenging time and to prepare for a safe recovery as soon as that is possible."

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