Governor Approves Expanded Business Loan Program, Business Tax Relief, $ 600 Personal Rebate – Los Alamos Reporter
THE GOVERNOR’S OFFICE
Governor Michelle Lujan Grisham on Wednesday signed Senate Bill 1 and Bill 3, a pair of economic measures that have garnered broad bipartisan support in the legislature and will provide additional stimulus and relief to business and to individuals in New Mexico.
In addition to the legislation, the governor has already signed a law which will provide for $ 200 million in small business grants, the economic relief measures signed Wednesday will provide a personal income tax refund of $ 600 to hundreds of thousands of frontline and low-wage workers, provide a four-month tax holiday for businesses in food and drink particularly affected by the economic effects of the pandemic and make up to $ 500 million available to small businesses in New Mexico seeking loans at a reduced borrowing rate.
“Dollar for dollar, I would put New Mexico’s stimulus efforts directly against any other state in the country,” Governor Lujan Grisham said. “We have provided hundreds of millions of unemployment benefits; small business grants, loans, tax exemptions; and now direct discounts for frontline workers who have continued to come forward to support themselves and their families, and who deserve all the support their government can provide. This pandemic has been devastating for everyone, but the pain has been unevenly distributed. My hope is that these economic relief efforts reach those who need them most, and my commitment is that New Mexico will continue to scale up and support those in need now and in the future as we build a recovery. successful and sustainable.
“Small businesses have fought long and hard to keep their doors open and people employed throughout this pandemic,” said Rob Black, president and CEO of the New Mexico Chamber of Commerce. “Coupled with the recently promulgated $ 200 million in HB 11 LEDA grants, these measures provide a critical suite of tools for economic recovery. “
Senate Bill 1 grants a personal income tax refund of $ 600 to families and individuals claiming the working family tax credit – individuals who earn $ 31,200 or less; and heads of households, surviving spouses or jointly declaring married persons who earn up to $ 39,000. About 200,000 New Mexicans claimed the Working Family Tax Credit in 2019, according to the Department of Taxation and Revenue.
Taxpayers who believe they qualify for the Working Families Tax Credit and the New Income Tax Refund are urged to file their 2020 personal income tax return as soon as possible. The state’s tax and revenue department urges all taxpayers to file their returns electronically, which speeds up processing and puts refunds and remittances in the hands of taxpayers faster.
“We know that many New Mexicans were hit hard last year, so we’ll get this money back to taxpayers as quickly as possible,” Tax and Revenue Secretary Stephanie Schardin Clarke said.
Senate Bill 1 also provides a four-month gross revenue tax holiday for food and beverage establishments, including restaurants, bars, food trucks, small breweries, wineries and restaurants. artisanal distilleries, which have been financially affected by the pandemic. The Department of Taxation and Revenue will soon issue instructions for businesses on how to claim this credit. The bill releases local communities from all liability by creating a distribution equal to the amount of revenue that would otherwise have been due.
Senate Bill 1 was sponsored by Senate Majority Leader Peter Wirth, Senator Siah Correa Hemphill, Senator Jacob Candelaria and Representative Javier Martinez. It was approved by the Senate unanimously and by the House of Representatives 66-1.
Senate Bill 3 will allow more businesses to tap into what is now a $ 500 million loan pool at a reduced borrowing rate. The bill extends the Small Business Recovery Loan Fund established by the Legislature last year and makes funds available to the Permanent Severance Tax Fund. The new bill drastically eases the eligibility standards so more businesses can get the financial help they need. Under the previous program approved by lawmakers in special session last year, 890 companies received $ 40.5 million in loans.
the New Mexico Financial Authority manage the SB3 loan fund and aAn announcement will be made when the application is available.
New Mexico Financial Authority CEO Marquita Russel said loan requirements for lost earnings and documentation have been relaxed, and changes to SB3 will allow more than 160,000 small businesses to the state to access loans at low interest rates.
“The Small Business Recovery Loan Fund has already supported more than 5,000 jobs in the state. This has been a lifeline for many small businesses and now many more will be able to participate, ”said Russel.
Senate Bill 3 was sponsored by Representative Marian Matthews and Senator Jacob Candelaria. It was approved by the Senate 35-3 and the House of Representatives 51-17.