The New Mexico State Investment Council has recently approved the creation of a $100 million New Mexico Recovery Fund to assist businesses in New Mexico during and after the COVID-19 public health crisis. To be eligible for a loan, businesses must:
- Have forty or more New Mexico employees;
- Demonstrate an intent to retain as much of the company’s headcount as possible over the life of the loan;
- Demonstrate negative COVID-19 economic impact;
- Commit to spending at least 80% of loan proceeds in New Mexico;
Loan terms include:
- Size: Based on 2019 operating expenses but not to exceed $10 million.
- Annual Interest Rate: Between 3% and 10% based on credit attributes of the company.
- Repayment Term: Term will generally be between two and four years but will reflect the company’s projected ability to repay the loan and will be based on pre-crisis earnings before interest, tax depreciation and amortization. Most loans will also include a one-year period of cash interest and principal deferment. In addition, loans will have no prepayment penalties for companies that recover more quickly than projected and wish to retire the loan early.
Sun Mountain Capital in Santa Fe will manage the Recovery Fund.