Small Business CARES Relief Grants (New Mexico Finance Authority, December 3, 2020)
Summary
In these slides of December 3, 2020, the New Mexico Finance Authority describes the $100 million Small Business CARES Relief Grant program, funded with Federal stimulus funds that Governor Michelle Lujan Grisham and the Legislature directed to the NMFA, which provides grants of up to $50,000 to businesses with 100 or fewer employees facing financial hardship from the COVID-19 pandemic. Applications were accepted from Noon on Monday, December 7 through Noon on Friday, December 18th, in three rounds of $40 million, $35 million and $25 million. The rules set aside 40% of the funds for businesses in rural areas, give priority to hospitality and leisure businesses, and scale grants by number of employees, from $2,000 to $50,000. Eligible applicants include certain nonprofits and for-profit businesses owned at least 51% by New Mexico residents.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
1
Small Business CARES Relief Grants
December 3, 2020
2
Who We Are
The New Mexico Finance Authority was created in 1992 to
provide low-cost financing for cities, counties and businesses
throughout New Mexico.
NMFA’s mission is to advance New Mexico by financing
impactful, well-planned projects.
As part of the First Special Session in June, NMFA was named
as the administrator of the $400 million Small Business
Recovery Loan Fund which provides loans of up to $75,000
to small businesses that experienced significant revenue
declines in April and May. The application for that program
closes on December 31st. Information on this program can be
found at https://www.nmfinance.com/programs/small-
business-recovery-loan-fund/
Small Business
CARES Relief Grants
3
Governor Michelle Lujan Grisham and the Legislature
directed $100 million of Federal stimulus funds to the NMFA
to operate a grant program for small businesses hard hit by
the pandemic. Funds must be distributed by December 28th.
The $100 million Small Business CARES Relief Grant
program provides grants of up to $50,000 to businesses
with 100 or fewer employees and that are experiencing
financial hardship resulting from the COVID-19 pandemic.
Applications for the grants will be accepted from Noon on
Monday, December 7 through Noon on Friday, December
18th.
Funding Guidelines
4
The legislation requires that NMFA ensure geographic dispersion
40% of the funds are set aside for businesses in rural areas
60% of the funds are available to all businesses that are in or
located within 10 miles of a city with a population of 50,000+
The legislation also requires that NMFA give priority to
businesses in the hospitality and leisure industries. To achieve
this, funds have been set aside for certain businesses:
20% to accommodation businesses (NAICS code 721)
20% to food services and drinking businesses (NAICS code 722)
15% to all other leisure businesses (NAICS code 71 --Arts,
Entertainment and Recreation)
3% for Destination Marketing Organizations
2% for non-employer businesses
Funding Guidelines
5
The legislation requires that NMFA give priority to businesses that
are experiencing severe economic impact. To determine this:
NMFA will calculate each applicant’s profit & loss divided by the
number of employees.
This calculation will be used to prioritize applications should
applications exceed the amount of funding available.
6
Grant Awards
Grants will be awarded based upon a business’s employees.
Employees Grant Amount
0 $ 2,000 Contract employees do not
1-5 $ 10,000 count in this calculation
6-15 $ 15,000
Businesses that do not report
16-25 $ 25,000
26-40 $ 30,000 wages to the Department of
41-60 $ 40,000 Workforce Solutions (non-
61-75 $ 45,000 employer businesses) will be
76-100 $ 50,000 eligible for a grant of $2,000
Applicants are able to use pre-COVID employment levels for purposes of
determining the grant amount. Applicants are required to submit a copy of
the quarterly wage report to support the information.
Quarterly report from 3/31/2019 through 9/30/2020 will be accepted.
Funding Guidelines
7
Applications will be processed in three rounds so that
businesses that apply later in the application period still have
a chance to obtain funding.
Round 1: $40 million will be made available to all complete
applications submitted by Noon on December 10th
Round 2: $35 million will be made available to all complete and
unawarded applications submitted by Noon on December 15th
Round 3: $25 million (plus any unawarded funds) will be available
for all complete and unawarded applications by Noon on
December 18th
Businesses should only apply once. Given the scarcity of available
funds, businesses are encouraged to apply as early as possible.
Incomplete applications will not be processed.
Eligible Costs
8
The grant may be used for:
regular business expenses that cannot be paid without additional
assistance due to revenue losses because of the pandemic; and
expenses incurred due to the pandemic, such as PPE or retrofitting
a business to meet COVID-19 safety guidelines.
Businesses must demonstrate actual loss.
All businesses that meet eligibility guidelines may apply for
funding regardless of whether the business has already
received State or Federal assistance.
Note: The grants are funded using Federal dollars. The State,
through NMFA, may require additional documentation from the
business if requested as part of an audit.
Eligible Businesses
9
Eligible nonprofits include those designated by the IRS as
501(c)(3), 501(c)(6), 501(c)8, and other 501(c) corporations
that serve past or present members of the US Armed Forces.
For-profit businesses (sole proprietor, partnership,
corporation, limited liability company, etc.) owned at least 51%
by one or more NM residents.
“New Mexico Resident” means an individual who has certified
that the individual is domiciled in this state during any part of
the year or that the individual was physically present in this
state for at least 185 days during the taxable year, as
evidenced by a valid New Mexico State Driver’s License or
government-issued identification card.
10
Application Process
1. NMFA is using a third-party application system called
Formstack, which applicants will access at www.nmfinance.com.
The Formstack system has built-in logic to determine eligibility
based upon answers provided by applicant.
2. NMFA is requiring applicants to have checking accounts at
federally insured financial institutions.
3. Applicants selected for funding will be notified via email and will
execute the documents using digital signatures.
4. Grants will be funded thereafter through direct deposit.
5. Reporting. Applicants will be required to provide reports on
impact, including of the status of the business and number of
employees.
Application Process
11
The application system requires that businesses submit all
documents in electronic format at the time they apply. The
application system does not allow businesses to “save” the
application and return to the document at a later time.
Applications that do not have the required documents are
considered incomplete. Incomplete applications will be
considered the lowest priority and may result in decline.
Applicants should watch their inbox, junk folder and spam
filters for email from @nmfa.net, and @formstack.com emails
notices.
Application Process
12
Information you’ll need to complete the information:
North American Industry Classification System Code (NAICS Code)
Business’s revenues/cash receipts and expenses from April 1 –
November 30, 2020. Applicants are able to provide preliminary
results for November expenses.
Documents needed to be uploaded include:
2019 business federal tax return
Copy of quarterly wage report submitted to New Mexico
Department of Workforce Solutions
Bank information including a copy of a cancelled or voided check
Copy of NM Drivers License or Government-Issued Identification
for the “Authorized Officer” and all New Mexico resident-owners
that make up at least 51% of the business ownership.
13
New Mexico Finance Authority
207 Shelby Street
Santa Fe, NM 87501
CARES Line: (505) 992-9696
Toll Free: (877) ASK-NMFA
CARES@nmfa.net
www.nmfinance.com
New Mexico’s Partner in Building
Economic Prosperity and Stronger Communities
File and source
- File
- NMFA-SmallBusinessCARESReliefGrant.pdf
- Size
- 264,650 bytes
- SHA-256
- db0ad1655ef28521515fcb880f4b2e998c8bf744d2a8ec4b561bc1671d5ee3f0
- Original
- No public link identified.