How severely is small enterprise struggling via the coronavirus pandemic?
The New Mexico Finance Authority requested that query 14,125 occasions within the week or so earlier than Christmas.
That is what number of New Mexico companies requested for help from the state Small Enterprise CARES Aid Grants program administered by the finance authority.
It distributed $100 million to six,642 companies as a part of this system.
Grants ranged from $2,000 to $50,000, with 60 p.c of the cash going to city companies, 40 p.c to rural companies and 55 p.c to the hospitality business, together with resorts, eating places, bars and different tourism-related companies.
Borrego’s Guitars & Music Provide Co. in Santa Fe acquired $10,000.
“We acquired a small grant,” mentioned proprietor David Borrego. “We acquired it and it was gone in an hour. I’ve suppliers ready to receives a commission, and it secures a roof [over our head] for a couple of months.”
Borrego mentioned he can be “in a position to sleep at evening” if the grant had been $40,000. Earlier, he had gotten a $21,000 mortgage from the New Mexico Finance Authority.
“The state has stood up. The feds not a lot,” he mentioned.
Santa Fe Desert Chorale acquired $15,000. Like all performing arts teams in Santa Fe, it has had no theater ticket income for the reason that pandemic started.
“This grant actually helps us simply preserve the sunshine on and preserve our very small employees employed as we work towards the long run,” mentioned Emma Marzen, the chorale’s govt director. “It has been extremely difficult for us. We misplaced over $200,000 in ticket income simply in summer season. This grant offers us respiratory room to maintain us going.”
The state used an equation to attract the road between hardship and extreme sufficient hardship to get funded.
“The revenue/loss in the course of the pandemic was divided by the variety of staff [at a business],” mentioned Marquita Russel, CEO of the New Mexico Finance Authority, which offers financing to all kinds of entities all through the state.
Recipients needed to have fewer than 100 staff and be a sole proprietorship owned by a New Mexico resident, or a company or partnership with not less than 51 p.c New Mexico possession.
“Those who have been the toughest hit have been funded,” Russel mentioned. “That omitted loads of people. The most important situation is we didn’t come up with the money for to fund the entire companies that utilized.”
Joseph’s Culinary Pub in Santa Fe was one of many candidates that didn’t obtain funding. Neither did Santa Fe Spirits.
“As you may think about, we’re devastated,” Joseph’s normal supervisor Starr Bowers mentioned in an e mail. “We’ve been working this enterprise with six folks for the final couple of months. We have been hoping that this grant cash would assist us to rehire some employees. … It simply took us out on the knees a bit to have hope after which return to feeling like we’ve got none.”
Bowers, Santa Fe Spirits proprietor Colin Keegan and New Mexico Restaurant Affiliation CEO Carol Wight mentioned no cause was given to the candidates who weren’t funded.
“For people who [received] the grant, it’s very helpful,” Wight mentioned. “It can assist them survive one other month or two. For people who didn’t get it, they’re questioning what the hell occurred.”
The Legislature in November allotted $100 million of the state’s $319 million federal CARES Act allotment to the Small Enterprise CARES Aid Grants program. The primary grants have been despatched Dec. 18.
“You’ve acquired at hand it to the Legislature and governor to place this type of puzzle collectively,” Russel mentioned. “I’ve been round New Mexico for 20 years. I’ve by no means seen cash going out in statewide funding like this.”
The finance authority has not calculated what number of Santa Fe companies acquired the grant.
“I don’t suppose it’s going to resolve all the issues, but it surely undoubtedly is an efficient begin,” mentioned Bridget Dixson, CEO of the Santa Fe Chamber of Commerce.
New Mexico Small Enterprise Improvement Heart director Brian DuBoff believes the grants have been “fairly nicely designed” in just some weeks.
“By way of public coverage, this can be a fairly good program they got here up with,” DuBoff mentioned. “It’s too unhealthy it occurred so late within the 12 months. Numerous companies closed already. … These funds might be crucial to the survival of lots of our New Mexico small companies. For a enterprise with a couple of staff, it does add up considerably and does enhance their possibilities for survival.”
For the candidates who didn’t get grants, DuBoff mentioned the U.S. Small Enterprise Administration’s Financial Harm Catastrophe Mortgage program continues to be open.
“That has been one among my favourite instruments due to the phrases,” he mentioned. “It’s not a grant. It’s not free cash. However it is rather beneficiant with 3.75 p.c, 30 years. You may get some important funding, and there’s a 12-month deferral [on payments]. It’s a direct mortgage from the SBA.”