Small Business Recovery Act Heads To Governor’s Desk

Sen. Jacob Candelaria

NM House Democrats News:

SANTA FE — Delivering on its promise to rapidly provide assistance to New Mexico’s hard-hit businesses, the House of Representatives Thursday sent its second major small business relief bill to the Governor’s desk.

Passed by the House 51-17, Senate Bill 3 provides more than $460 million in low-interest loans to struggling small and medium-sized businesses in the state.

An emergency clause makes this relief available quickly after the Governor’s signature. 

Thursday’s news follows passage of $200 million in small business financial relief through House Bill 11, which has now passed both chambers and is on its way to the Governor’s desk.  

Sponsored by Sen. Jacob Candelaria (D-Albuquerque) and Rep. Marian Matthews (D-Albuquerque), SB 3 expands the Small Business Recovery Act passed in the June 2020 special session by: 

  • Making loans more accessible by removing restrictive details and provisions;
  • Expanding eligibility to more restaurant, hospitality, and mid-sized businesses;
  • Implementing substantial protections to minimize the businesses’ risk of loss; and
  • Providing ongoing financial support to the businesses as they recover.

U.S. Rep. Marian Matthews

“New Mexico’s mom and pop businesses need us now more than ever,” Rep. Matthews said. “Our state is beginning to safely reopen, but the challenges and debts of our struggling small businesses won’t disappear overnight. SB 3 provides them with the ongoing support they’ll need over the next year to keep their doors open and payroll sustained as we emerge from this pandemic together.” 

“Senate Bill 3 is the result of collaborative efforts among House and Senate sponsors, New Mexico’s Economic Development Department, and the Governor’s Office,” Sen. Candelaria said. “The initial Act helped many small businesses in our state, but SB 3 expands this vital initiative to make relief funds more accessible to more businesses for an extended period of time, as we weather what are hopefully the final stages of this pandemic.” 

If passed, Senate Bill 3 reauthorizes relief disbursement until May 31, 2022, enhancing the program’s stimulating economic impact. To lower the barriers to entry for small and medium-sized businesses, 10-year loans of up to $75,000 require no collateral or personal guarantee. The New Mexico Finance Authority who administers the loans will continue to work with businesses on repayment options unique to their financial circumstances to reduce the financial burden on businesses struggling with pandemic-related losses and costs. 

Members of the public can track legislation on the New Mexico Legislature website, access committee meetings, and House floor sessions via the Webcasts tab, or participate by Zoom to provide public comment on committee hearings. During the 2021 Legislative Session, the House of Representatives is focused on passing critical legislation while protecting the health and safety of the public, the staff, and the legislators.