San Juan College offers help to small businesses seeking low-interest loans
FARMINGTON — The Small Business Development Center at San Juan College is offering small business owners who are struggling in the face of coronavirus shutdown help in finding low-interest loans.
SBDC staff members are available to help via phone, email and zoom conferencing, according to a press release from the college.
Owners of small businesses — those classified as having 500 employees or fewer — are eligible to receive loans with an interest loan as low as 3.75 percent with terms up to 30 years, the press release states, while nonprofit organizations can receive loans with an interest rate as low as 2.75 percent. The loans can be used to pay fixed debts, including rent and mortgages, payroll and accounts payable, and other bills that could have been paid if the pandemic had not taken place.
The press release states the loans cannot be used to pay down long-term debt, nor are they intended to replace lost sales or profits for expansion. The first payment on any loan until a year after the loan is funded.
Loans of up to $2 million are being extended to qualifying businesses, according to the release, and eligibility is based on the size and type of business and its financial resources. Businesses that qualify for a loan could begin receiving money within three weeks.
A separate program created by the New Mexico Economic Development Department is targeted for manufacturing business that are seeking emergency loans or lines of credit because of the crisis, the release states. The department can guarantee a portion of a loan or a line of credit up to 80 percent of the principal or $50,000. The loan funds can be used for various purposes, including working capital, inventory and payroll, the release states. The list of participating lenders in San Juan County includes U.S Eagle Federal Credit Union and Washington Federal.
The SBDC at San Juan College can be reached at 505-566-3528 or SBDC@sanjuancollege.edu. For information about the Economic Development Department program, visit gonm.biz or nmsbdc.org.