Home News Local News NM businesses get $1.48 billion in SBA funding

NM businesses get $1.48 billion in SBA funding

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New Mexico businesses received more than $1.48 billion from the first funding cycle for emergency Small Business Administration loan programs, according to reports from the SBA.

County and city-level funding information are not available for release at this time, according to SBA spokeswoman Carol Chastang.

Three reports released by the SBA indicate the totals of loans and grants that businesses in New Mexico have received from the first release of money for the Paycheck Protection Program, as well as from the Economic Injury Disaster Loan (EIDL) program and the Economic Injury Disaster Loan Advance (EIDL Advance) program. Although the EIDL programs were providing funds at the beginning of the coronavirus emergency, they no longer are accepting applications until additional appropriations are made.

The Paycheck Protection Program, originally funded with $349 billion by the Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law March 27, launched April 3 and had committed all of its funds in about two weeks.

According to a report issued April 16, the first phase of the Paycheck Protection Program resulted in 8,277 loans to New Mexico businesses, providing $1.42 billion in funding. Portions of the loans can become grants if businesses meet certain requirements.

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Nationwide, there were 1.66 million PPP loans for a total of $342.28 billion. The vast majority, 74.03%, were loans of $150,000 or less.

For the Economic Injury Disaster Loans, New Mexico businesses had received 206 loans for a total of $37.53 million as of April 24. Nationwide, there were 38,984 EIDL loans for $7.97 billion.

In New Mexico, 4,900 EIDL Advances — which were grants of up to $10,000 meant to be awarded immediately pending acceptance of the EIDL loan application — were given by April 24 for a total of $21.12 million. Nationwide, there were 1.19 million EIDL Advances provided for a total of $4.81 billion in funding.

The PPP loan program, which was created to help businesses keep operating and keep their employees on the payroll during the coronavirus crisis, was refunded by Congress with an additional $310 billion last week.

The head of a New Mexico banking operation that has its headquarters in Artesia said that small business owners needing help should apply even though it might be possible that this second round of funding won’t meet all demand.

“I would encourage anyone, any small business, to get their applications in as quickly as they can,” said Greg Marrs, chief executive officer of First American Bank.

He said that his bank has made 961 PPP loans to businesses in various New Mexico cities during both the first and second funding releases of the program.

According to the Small Business Administration, there were more than 250 New Mexico banks and lenders authorized to make PPP loans as of April 23.

Senior Writer Lisa Dunlap can be reached at 575-622-7710, ext. 351, or at reporter02@rdrnews.com.

 

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Lisa Dunlap is a general assignment reporter for the Roswell Daily Record.