Rob Black, president of the New Mexico Association of Commerce and Industry, said the time frame for showing economic injury (for the Small Business Recovery Loan Fund) is “pretty limited,” noting that many small businesses suffered greater losses during the summer months compared to April and May after more restrictions were put in place.
The terms of the loans can also prove problematic for owners. The interest rate is one-half of The Wall Street Journal prime rate on the date the loan is approved. That rate is currently 3.25 percent. Business owners who are approved must make payments on just the interest for three years, but face a balloon payment on the third anniversary of the loan approval.
Photo above: An empty central plaza and shopping district is shown amid a public health order that has closed down most retail stores and suspended dine-in restaurant service in Santa Fe, N.M., Friday, March 27, 2020.
Morgan Lee / AP file photo