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Demand rises for New Mexico pandemic small business loans

SANTA FE, N.M. (AP) — New Mexico state finance authorities say demand appears to be building for minimum-interest loans aimed at helping small businesses that lost income or experienced major disruptions during the coronavirus pandemic.

New Mexico Finance Authority CEO Marquita Russel told a panel of state legislators on Wednesday that about 865 businesses have applied to the program since an overhaul in March. That could result in new loans worth $65 million.

New Mexico’s small business recovery loans are repaid at half the prime rate of interest that commercial banks charge their most creditworthy customers. Zero interest is accrued during the loans' first year.