In this section
To ensure increased access to PPP for minority, underserved, veteran, and women-owned business concerns, SBA is undertaking the following steps, among others:
This program is administered by the U.S. Small Business Administration.
When you are ready to apply, visit sba.gov.
Open until March 31 Size standards, eligibility criteria, and certain limitations for the original CARES Act PPP Loan are applicable including 60% must be for payroll to qualify for forgiveness - changes:
Expands eligibility includes 501(c)(6) nonprofits, such as local chambers of commerce, destination marketing organizations, housing cooperatives, newspapers, broadcasters, and radio stations.
Expands covered expenses to include software, cloud computing resources, and human resources and accounting needs, as well as property damage costs due to public disturbances not covered by insurance, supplier costs & purchase of personal protective equipment.
Includes set-asides to support first-time PPP borrowers with 10 or fewer employees. Additionally, provides for a set-aside for loans made by community lenders.
A simplified loan forgiveness application form consisting of a one-page certification that requires the small business to list the loan amount, the number of employees retained and the estimated total spent on payroll costs for loans $150,000 or less.
You may qualify even if you took advantage of the Employee Retention Tax Credit (more later).
Borrower now has the option to select a covered period during which they can use PPP loan proceeds anytime between 8 and 24 weeks after disbursement.
Business entities (e.g., partnerships, corporations, LLCs)
Sole proprietors, independent contractors, self-employed individuals
501(c)(3)
501(c)(6)
501(c)(19) Veterans organization
Tribal business, and
Housing cooperatives, destination marketing organizations, and eligible news organizations.
Must comply with size standards, eligibility criteria, and certain limitations.
Covered expenses for loan forgiveness expanded as stated with 1st Draw
Repealed the previous CARES Act provision that required small businesses to deduct any Economic Injury Disaster Advance grants from PPP loan forgiveness.
Overrides IRS ruling that barred small businesses from deducting from their taxes expenses paid with PPP loans.
Employers can now also receive both the Employee Retention Tax Credit and a PPP loan, just not to cover the same payroll expenses.
Reapplication may be an Option
Eligible applicants that did not receive a PPP loan prior to August 8, 2020, will now have the ability to apply for a PPP First Draw Loan on or before March 31, 2021.
Eligibility for PPP loans has been revised to include additional types of entities.
Covered eligible expenses expanded and now includes the following: payroll costs, rent, mortgage interest, utilities, operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
Certain borrowers may request an increase to their original PPP loan amount.
BEGIN YOUR 1st DRAW APPLICATION TODAY
Eligibility for the PPP second draw - have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 & 2020.
Establishes a maximum loan size of 2.5X average monthly payroll costs, up to $2 million. Allows small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) to receive PPP second draw loans equal to 3.5X average monthly payroll costs. PPP –2nd Draw 9 www.nmsbdc.org
Borrowers receive full loan forgiveness if they spend at least 60 percent of their PPP second draw loan on payroll costs over a time period of their choosing between 8 weeks and 24 weeks.
Includes set-asides to support second-time PPP borrowers with 10 or fewer employees. Additionally, provides for a set-aside for loans made by community lenders.
Eligible borrowers that previously received a PPP First Draw Loan may apply for a PPP Second Draw Loan of up to $2 million with the same general loan terms as their PPP First Draw Loan.
For most borrowers, the maximum loan amount of a PPP Second Draw Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.
For borrowers in the Accommodation and Food Services sector (NAICS 72), the maximum loan amount for a PPP Second Draw Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
PPP Second Draw Loan applicants must use the new SBA Form 2483-SD Borrower Application.
Was eligible for and previously received a PPP First Draw Loan;
Has or will use the full loan amount only for eligible expenses before the PPP Second Draw Loan is disbursed;
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
BEGIN YOUR 2nd DRAW APPLICATION TODAY
Portal extended until December 31, 2021
Forgiveness
Significantly expands the ERTC beginning on January 1, 2021 and expires on June 30, 2021 (good for 2 quarters)
Employers can now receive both the ERTC and a PPP loan, just not to cover the same payroll expenses.
Reference the ERTC details at the following link but also be sure to talk to your accountant to help you investigate this with you.
For those opting into the White House’s employee-side payroll tax deferral, the repayment deadline has been extended from April 2021 to December 31, 2021, lengthening the repayment period for those taxpayers.
The Paycheck Protection Program resumed January 11, 2021 with the application window open through March 31, 2021. Meet with your Bank/Lender as soon as possible.
The New Mexico SBA district office; (505) 248-8225 can help connect you to one of their SBA resource partners which include the SBDC Network, WESST (Women’s Business Center Program for New Mexico), SCORE (3 chapters), and the Veterans Business Outreach Center (VBOC) experts who are standing by to assist you. That’s what they are all here for.
Go to https://www.sba.gov/funding-programs/loans/lender-match, click on “Find Lenders” to request a lender or call the SBA PPP Lender Hotline: 1-833-572-0502.
An independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements. Refer to www.sba.gov/ppp for complete eligibility criteria.
Contact your lender directly.
Business owners and contractors do NOT qualify as employees.
Both full-time and part-time employees are considered.
No, contractors are not considered employees. Your employee count would include both part-time and full-time employees. Use your schedule C, line 31, divide by 12, multiply by 2.5 for your loan amount.
Note: your contractors may be able to apply as a sole proprietor as well if they meet all eligibility criteria.
Access the Second Draw PPP Loan guide for “How to Calculate Revenue Reduction & Maximum Loan Amounts, Including What Documentation to Provide” here:
Community Financial Institutions include the following organizations:
How do I know if my institution is a CFI?
If “Lender Location Enabled for Origination in Etran” is checked in Institution Settings, your institution is an enabled CFI (see example below).
My institution is not a CFI. What am I enabled to do in the Platform now?
Organization admin users can begin to add users in the Platform and review new and updated materials on the Resource tab in the Platform.
Here in New Mexico, there are two CDFIs; Dream Spring 1-800-508-7624 and LiftFund 1-888-215-2373. They are non-profits that target lending to the most in-need communities and business owners who may not have a banking relationship.
The Small Business Development Center (SBDC) is not designed to support 501c3 organizations, but if you are a 501c3 and need help, call a SBDC counselor and we will put you in touch with the right assistance.
Tourism business counselors through SBDC are also available to provide guidance and recommendations to business owners that need assistance with the application process. These business counselors are available Monday - Friday, 9:00 am - 4:00 pm.
Northern New Mexico - (505) 300-2781
Southern New Mexico - (575) 800-0345
If the entity is one of the following affected by Coronavirus (COVID-19) may be eligible:
If you are working with the same lender, they will have what you previously submitted so you will not have to resubmit that information.
The SBA is actually covering the ‘behind the scenes’ fees or costs which helps incentivize the lenders' participation in the PPP. Ideally, the lender wants you to use all of the funds available for the intended purposes which are 60% or more for payroll and 40% or the remaining for other operating costs. Anything that is not forgivable, the lender will service at 1% for 5 years. But the hope is for the business to ensure and realize full forgiveness.
Lenders provide ‘how to apply for PPP loan forgiveness’ on their websites.
There is a map available here on the SBDC website. In the top left corner of the map enter your business address, city, county, state, zip code.
This program is administered by the U.S. Small Business Administration.
When you are ready to apply, visit sba.gov.
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