SBA News:
Economic Injury Disaster Loan Program
In its concerted efforts to help US small businesses in these difficult and challenging times, the SBA has introduced the Economic Injury Disaster Loan (EIDL) program with a deadline for the application of Dec. 17, 2020.
The following are the main points of the EIDL program:
- Loans are up to $2 million.
- Collateral is required for loan applications above $25k but loans will not be turned down for lack of collateral.
- These loans are extended by the SBA and do not go through commercial banks.
- Duration is up to 30 years and there is a one-year deferment that was granted to borrowers from the date of the loan.
- The application process can be completed online or by mailing in the loan application form. However, the online application is the encouraged method for expediency and accuracy.
- Interest rates for businesses is 3.75% and for non-profits is 2.75%.
For more information about the EIDL program, go to:
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0
If you require assistance in filling out the loan application form, please go to: https:////www.nmsbdc.org/ to register on the New Mexico Small Business Development Center (NMSBDC) website and we will contact you within twenty four hours. If you require immediate assistance, please contact Monther Jubran, Director of the Los Alamos SBDC, at mjubran@unm.edu or at (505).203.3237.
Business Loan Guarantee Program:
Additionally, New Mexico Economic Development Department has introduced the Business Loan Guarantee Program (BLGP) to guarantee business loans of up to 80% with a maximum guarantee amount of $50,000. Loan proceeds are flexible and can be used for (and not limited to) working capital, inventory and payroll.
Process to apply for the BLGP:
- Borrower approaches lender
- Lender applies to the program
- Lender and NMEDD sign agreement
- Lender extends the loan
- NMEDD guarantees the loan in case of default
Businesses can also take advantage of the Local Economic Development Act (LEDA) zero-percent interest loans. Under this Act, the following conditions must be met to qualify for a loan:
- Limited to expenditures for land, building and infrastructure
- Can be used for lease abatement or mortgage assistance
- Company must be a qualified entity (manufacturer, non-retail service business with more than 50% of revenue generated out of state, or a retail business in a community or less than 15,000 in population)
- All loans will be required to provide security equal to the amount of the loan
For assistance with LEDA loans, find & contact your Regional Representative, or contact Mark Roper, Mark.Roper@state.nm.us or 575.562.0327.
