HOUSE DEMOCRATS NEWS
Critical legislation providing more than $460 million in relief loans for New Mexico’s hard-hit small businesses passed the House Taxation and Revenue Committee today.
Sponsored by Representative Marian Matthews (D-Albuquerque), and Senator Jacob Candelaria (D-Albuquerque), SB 3: the Small Business Recovery Act expands on the original measure passed in the June 2020 special session. The enhanced Act specifically centers $460 million in low-interest loans for New Mexico’s mom and pop businesses to help them keep their doors open and payroll sustained.
A collaborative effort between House and Senate sponsors, New Mexico’s Economic Development Department, and the Governor’s Office, the expanded Small Business Recovery Act:
- Makes loans more accessible to businesses by removing restrictive details and provisions.
- Contains substantial protections to minimize the risk of loss.
- Expands eligibility to include more restaurants, hospitality businesses, and mid-sized companies.
- Structures the program to provide ongoing financial support to businesses as they recover.
Many of New Mexico’s small and medium-sized businesses still need help to survive and revive,” said Rep. Matthews. “With the changes made in the expanded Small Business Recovery Act, we’re reaffirming our commitment to investing in the future of New Mexicans and New Mexico businesses. We’ve come so far. It would be a shame to abandon them just as vaccinations lessen the impact of the pandemic.”
“After the passage of the original Act in June, it became clear that revisions were necessary to make it easier for businesses to access these low-risk loans,” said Sen. Candelaria. “The expanded Small Business Recovery Act provides an immediate lifeline to small, locally-owned businesses to help keep their doors open and payroll going as we enter the final stretch of this devastating 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.
Senate Bill 3 passed the House Taxation and Revenue Committee in an 8-3 vote and goes next to the House Floor.
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.