With all of the adjustments small businesses have had to make over the past few months, some good news is always welcome!
For those small businesses in New Mexico, please make note, June 30th is the new deadline to take advantage of the Paycheck Protection Program (PPP). What does that mean for you, the small business owner? Its great news for those local businesses throughout New Mexico, through the partnership of the Economic Development (EDC), and the US Small Business Administration (SBA) as significant changes to the PPP will benefit those approved for the loan programs. Businesses have better options with the changes when implementing the approved dollars with the Paycheck Protection Program.
Below is a brief summary of the changes to the PPP and SBA loan programs. I strongly suggest consulting your CPA before making any decisions regarding these programs.
Businesses can reopen at their own pace – businesses have until December 31, 2020 to restore employees to pre-pandemic levels. No provision on hiring previous employed staff.
60 percent of the monies can be distributed for payroll. (previously 75%) Payroll for some businesses is less than the amount needed for other expenses such as mortgage and rent. (For example; small boutique retailers, galleries and back office businesses)
New loans now require a five year repayment and 24 weeks to use the PPP dollar amount provided.
If your business is still under the COVID-19 restriction, this is a great opportunity to utilize the PPP and assist in the transition of moving toward its final phases. I share this information with YOU and businesses throughout New Mexico because I want to see all of us come out of the pandemic economically stronger and working toward a better, brighter and healthier future!
Links with details of the PPP and the SBA loan programs: SBA.GOV
Links to SBDC New Mexico COVID-19 Counseling and Training programs: NMSBDC.ORG
Shelly Branscom, CCIM is an NAI Maestas & Ward commercial real estate specialist that provides substantial long term strategies and business planning services to her clients. She prides herself on thinking outside the box, enabling her to contribute unique solutions and outcomes specific to each of her clients. Learn more about Shelly and her listings.
NAI Maestas & Ward is a full-service commercial real estate company serving New Mexico since 1996. The company is a dynamic commercial real estate firm offering best-in-class real estate services in brokerage, property management, asset management, business brokerage and development services.