COVID-19 Business Loan Guarantee Program

The New Mexico Economic Development Department (NMEDD) has created a program to assist businesses seeking emergency loans or lines of credit to deal with negative economic impacts from COVID-19. NMEDD can guarantee a portion of a loan or line of credit up to 80% of principal or $50,000. Loan proceeds are flexible and can be used for (and not limited to) the following: working capital, inventory and payroll. 

Process:

  • Borrower approaches their lending institution or locates a lender to discuss getting a loan or line of credit
  • Lender vets project and applies to the program
  • Lender and NMEDD sign agreement
  • Lender makes the loan
  • NMEDD guarantees the loan in case of default   

Borrowers work with their lenders. Lenders apply to the program for a guarantee.

Documents: 

Contact: Johanna Nelson, Johanna.Nelson@state.nm.us or (505) 469-6204.