Small business grants could prop up struggling economy

Small businesses experiencing financial hardship due to the pandemic are about to get some much-needed help.

Beginning Monday (Dec. 7), eligible businesses can apply for and receive grant money that does not need to be repaid — up to $50,000.

The Small Business CARES Relief Grants, created during the November 2020 Special Session of the New Mexico State Legislature, provide $100 million to for-profit and nonprofit organizations with 100 or fewer employees.

To be eligible for the grants, a business or nonprofit must meet one of the following requirements:

1) Sole proprietorship owned by a New Mexico resident, or

2) Corporations, partnerships, joint ventures, limited liability companies or limited partnerships that are at least 51 percent owned by one or more New Mexico residents, or

3) Nonprofit corporations designated as a 501(c) (3), 501(C)(6) or 501(c)(8) entity, or a 501(c) organization that serves past or present members of the U.S. Armed Forces.

The grant application process opened at noon Monday (Dec. 7), and will close at noon Friday (Dec. 18).

The New Mexico Finance Authority is managing the effort, and will award grant money in three rounds of funding. The round-1 deadline is Thursday (Dec. 10), the round-2 deadline is Tuesday (Dec. 15), and the round-3 deadline is Friday (Dec. 18).

Grant amounts will be decided based on the number of employees working at a business or nonprofit. The hospitality and leisure industries will be given priority in grants awarded, as stipulated in the legislation. Forty percent of the grant money will go to businesses in rural areas.

The Small Business CARES Relief Grants are a new source of financial support for struggling businesses in the state and may be sought if a business has already received federal, state or city funding.

For more information, visit nmfinance.com/