Small Business CARES Relief Grants

The Small Business CARES Relief Grant application is now closed.

Thank you to all the New Mexico businesses that applied for a Small Business CARES Relief Grant. NMFA received 14,136 grant applications totaling $156 million in funding requests. The Small Business CARES Relief Grants were authorized by the State of New Mexico in the November 2020 Special Session and were funded by $100 million in Federal CARES stimulus funds.

Grants were awarded to 6,743 businesses throughout New Mexico, with 60% of the funds provided to businesses in urban areas and 40% of the funds to businesses in rural areas of the state. The businesses receiving grants include restaurants, hotels, retail stores, nonprofit organizations, manufacturing companies, accountants, and many more in communities large and small throughout New Mexico. The smallest grant was $2,000 and the largest grant was $50,000. The average grant size was $15,000.

For information about other available grant or loan opportunities to help businesses during the pandemic, please visit the New Mexico Economic Development Department website at https://gonm.biz/about-us/covid-19-response/.

If you have questions about your grant agreement, please email CARES@nmfa.net.

Application Links

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What are Small Business CARES Relief Grants?  

The Small Business CARES Relief Grants were created by the State of New Mexico in the November 2020 Special Session to provide $100 million in grant funding to New Mexico small businesses that are experiencing financial hardship due to the pandemic.

What is a grant?  A grant is money given for a specific purpose without any obligation to repay the funding. In this case, grants will be given to help New Mexico businesses weather the economic hardship due to the pandemic. This grant does not need to be paid back.

Eligibility

Small Business CARES Relief Grants are available to New Mexico for-profit businesses and nonprofit organizations with 100 or fewer employees that meet one of the following requirements:

  1. Sole proprietorship owned by a New Mexico resident, or
  2. Corporations, partnerships, joint ventures, limited liability companies or limited partnerships that are at least 51% owned by one or more New Mexico residents, or
  3. Nonprofit corporation designated as a 501(c)(3), 501(C)(6) or 501(c)(8) entity, or a 501(c) organization that serves past or present members of the Armed Forces of the United States.

More Information

Process for funding applications

Are the grants given out first-come, first-served?

The applications will be funded in three rounds so that businesses that apply later in the application period still have a chance to obtain funding. The funding rounds and amounts set aside for funding are as follows:

 Round 1: Applications submitted by noon on December 10: $40,000,000

Round 2: All applications submitted by noon on December 15 and those unawarded applications from Round 1: $35,000,000

Round 3: All applications submitted by noon on December 18 and those unawarded applications from Rounds 1 and 2: $25,000,000 plus any allocated funds that were not used in earlier rounds.

Applicants should apply only once. If an application is not funded in the round in which it was submitted, the application will roll into the next round and will be considered again.

Application Deadline

When will the application be open?

The application will be open from noon on December 7 until noon on December 18. The application will close at noon on Friday, December 18. Please note that this is only 11 days. We encourage you to apply as early as possible. Businesses should only submit one application.

Required Documents in an electronic format
  1. 2019 business federal tax return or most recent tax return plus any extensions. For sole proprietors, this is a Schedule C. Please do not include any additional schedules;
  2. A quarterly employment wage report submitted to the New Mexico Department of Workforce Solutions for any quarter ended March 31, 2019 or later, including Department of Workforce Solutions (DWS) Employer Report on Wages, form ES903a or IRS Form 941. Other acceptable documents are listed here. If no report is provided, applicant will be considered a non-employer business; Sole proprietors can upload their Schedule C here again if a document is required.
  3. applicant’s NAICS Code;
  4. bank account information including a copy of a canceled check, voided check, or direct-deposit form issued by your financial institution;
  5. copy of the driver’s license or government-issued identification card for the authorized officer and all New Mexico resident owners that make up at least 51% of the business. If the business owners do not have a New Mexico driver’s license, they must submit their  driver’s license or government-issued identification card from any state, plus one of the following:
    1. 2019 New Mexico personal income tax return for the business owner showing New Mexico residency
    2. A utility bill, bank statement, or credit-card statement with the business owner’s name and physical NM address dated within the past 60 days
    3. A local property tax statement with the business owner’s name and physical NM address dated within the past 60 days
    4. A rent or mortgage statement with the business owner’s name and physical NM address dated within the past 60 days

Nonprofit organizations do not have to provide ownership information, but will be required to provide a driver’s license for their Authorized Officer.

NMFA may request additional information to verify residency, number of employees, measurement of severe economic impact, or anything else needed to evaluate the application.

Applications that do not have the required documents are considered incomplete. Incomplete applications will be considered the lowest priority and may result in decline.  NMFA staff will inform applicants through email regarding missing attachments.  Applicants should watch their inbox, junk folder and spam filters for email from @nmfa.net and @formstack.com.

Funding Prioritizations

How do you decide which applications to fund? 

To ensure that grants have been distributed throughout the State, 40% of the funds have been set aside for businesses in rural areas. Businesses in the Hospitality and Leisure industries will be been given priority to the funding as directed by the legislation.

If there are more applications then available funding, NMFA will prioritize the applications based on each business’s profit or loss per employee and will fund the applications in the order prioritized.

The profit and loss information should be from the time period April 1, 2020 through November 30, 2020. If a business opened after April 1, 2020, the time period should include the entire time since the business opened.

Definition of New Mexico Resident

“New Mexico Resident” means an individual who has certified that the individual is domiciled in this state during any part of the year or that the individual was physically present in this state for at least 185 days during the taxable year, as evidenced by a valid New Mexico State Driver’s License or government-issued identification card.

If you meet the New Mexico residency requirements but don’t have a New Mexico driver’s license, you are still eligible to apply.

If the business owners do not have a New Mexico driver’s license, they must submit their  driver’s license or government-issued identification card from any state, plus one of the following:

  1. 2019 New Mexico personal income tax return for the business owner showing New Mexico residency
  2. A utility bill, bank statement, or credit-card statement with the business owner’s name and physical NM address dated within the past 60 days
  3. A local property tax statement with the business owner’s name and physical NM address dated within the past 60 days
  4. A rent or mortgage statement with the business owner’s name and physical NM address dated within the past 60 days

Nonprofit organizations do not have to provide ownership information, but will be required to provide a driver’s license for their Authorized Officer.

Grant Amounts

What are the grant amounts? How much can I ask for?

Businesses will be awarded grant amounts based upon the number of individuals they employ. The grant amounts are fixed amounts that are based on quarterly wage reports submitted to the New Mexico Department of Workforce Solutions. Businesses that do not pay unemployment taxes (non-employer businesses) and those that do not submit a copy of the quarterly wage report will be eligible for a grant of $2,000.

Number of employees            Grant Amount

0                                              $2,000

1-5                                           $10,000

6-15                                         $15,000

16-25                                       $25,000

26-40                                       $30,000

41-60                                       $40,000

61-75                                       $45,000

76-100                                     $50,000

Business owners do not qualify as employees. Employees to be included are full-time and part-time employees, not including contract employees.

How do I demonstrate the number of employees?

The grant amount is based on the number of employees a business has. Proof of number of employees is required, and acceptable documents include:

  • IRS Form 941
  • Department of Workforce Solutions (DWS) Employer Report on Wages, form ES903a. (Click here to visit the DWS website)
  • Other documents that will be listed in the application.

I’ve had to reduce staff because of the Emergency Health Orders. How will this affect the amount of grant I receive?

Applicants are able to use pre-COVID employment levels for purposes of determining the grant amount. Applicants are able to submit any quarterly wage report from March 31, 2019 to date.

Use of Grant Funds

What expenses can I pay with this grant?

The grant may be used for regular business expenses that cannot be paid without additional assistance due to revenue losses because of the pandemic. The grant may also be used for expenses incurred due to the pandemic, such as PPE or retrofitting a business to meet COVID-19 safety guidelines.

NAICS Codes

How do I find my NAICS code?

On your federal tax return or Form 990, your NAICS code  is called “Business Code.”  Your business NAICS code can be found on the following tax forms:

  • Sole Proprietors – Form 1040 Schedule C: page 1 Box B
  • Partnerships, LLC’s, LLP’s etc. – Form 1065: page 1 Box C
  • S-Corporation – Form 1120S: page 1 Box B
  • Corporation – Form 1120: page 4 line 2a
  • Non-Profit – Form 990: page 9, line 2a-e

If you are a new business that doesn’t have a 2019 tax return, choose the NAICS code that best fits your business from the drop-down list in the application.

 

Other Information

Are these different from the CARES grants being given out by NM cities and counties? 

Yes, this is a different grant program. You may apply for a grant for a Small Business CARES Relief Grant even if you’ve already applied for funding from your city or county. All businesses that meet eligibility guidelines may apply for funding regardless of whether you already received State or Federal assistance.

In the application, please include any CARES Act grants received by the time of application including the portion of Paycheck Protection Program that you anticipate will be converted to grant. Do not include loans or any portion of the Paycheck Protection Program that you anticipate will not be converted to a grant.

Are Native American-owned businesses eligible to apply?

Yes, subject to the eligibility requirements that apply to all businesses.

 

Who may submit the application?

The application must be submitted by the “Authorized Officer” designated in the application.

If my business has temporarily closed, am I still eligible to apply?

Yes.

 

My business opened in 2020. Am I eligible to apply?

Yes, as long as you received your Federal Employer Identification Number or other proof of your business plans (business license, tax id#, registration with NM Tax and Revenue Department, business loan documents) prior to April 1, 2020. This proof will need to be submitted with your application.

 What should I submit instead of a 2019 business tax return if my business opened in 2020? 

Businesses should submit a copy of their FEIN application or confirmation of their FEIN.

Sole proprietors should provide one of the following documents dated prior to April 1, 2020: a business license; registration with the New Mexico Taxation and Revenue Department; tax identification number;  business loan documents; or any proof in the name of the business that you were planning to open prior to April 1.

If my business is too new to have filed quarterly wage reports, am I still eligible to apply? 

Yes. If you paid employees in October and/or November 2020, you may submit third-party payroll tax reports submitted to the State of Federal government on behalf of the business such as: ADP, Paychecks, or Intuit Payroll.

Can an owner apply for multiple businesses?

Yes, as long as the businesses have different Federal Employer Identification Numbers (FEIN).

 

How long does the process take?

If your application is approved in the funding round it was submitted, you could receive your grant in 7-10 days. If your application is not approved initially and rolls over to the next round, the process could take as long as three weeks.  All funding is expected to be disbursed by December 24.

Questions?

Email: CARES@nmfa.net

Phone: (505) 992-9696

 

Resources

Submitting Your Application - Important and Helpful Tips
Quick Information
Información Rápida
Frequently Asked Questions
Preguntas Frequentes
Extra application help - Más Ayuda con la Aplicación
Recorded webinar - December 3, 2020
Powerpoint slides from December 3 webinar
How to reduce the size of PDF files
Lodgers' Tax by City and County: DMO Awards
The Impact of Tourism on New Mexico: DMO Prioritization
CARES Act Grants Policies and Procedures