Add eSignature Bridge Loan Agreement
hi good afternoon my name is joanna nelson and i'm with the new mexico economic development department and you have tuned in today to an ongoing edd webinar series where we highlight and focus particular programs that are available to help small businesses and communities and today we're really honored to be here with a really important partner of ours the new mexico finance authority and they are going to be addressing the small business recovery loan fund and providing updates and information about how to apply so before we get started i did want to let you know that we are recording this presentation we will post this to our facebook page as well as youtube we do know that there's an important press conference going on by the governor and her staff i think right now so apologies about that we booked this this webinar before we knew that there was a conflict in time so if you do have to jump off and watch that perfectly fine we will send the link out to the recording as well as the presentation if you do have questions please type those in the questions box you should see that in the right side of your screen there's a little gray horizontal box that says questions type those as they come to you and we will address those at the end of the presentation we also got your questions when you registered so we'll do our best to get to those at the end i did want to provide a bit of information about the economic development department really briefly let you know that our cabinet secretary is alicia j keys our deputy cabinet secretaries john clark you can see the divisions that are in our department they include economic development film outdoor wreck new mexico border authority office of military-based planning spaceport authority and main street i mentioned that this webinar is a part of an ongoing webinar series and here on this slide you can see some upcoming events and information sessions that we have planned for the fall and winter so our next event will be the rural efficient business program this will be on october 29th and we will be highlighting energy efficiency practices from rural businesses all across the state and this interview will be with noisy water who is located in riodoso new mexico also next webinar is november 18th we'll be highlighting what a cog is which stands for council of government and how they are helping with covid19 recovery and strategic planning and then also november 20th we have the uh edd mini series specifically for business owners of color and this session will be focusing on what is a cdfi and a credit union and how they can be utilized to help find financing for businesses and then we have an event coming up that will focus on the southern part of the state this will be our business finance fair and this will be december 9th and what this will be is if you are a business looking for financing we will invite all of the lender organizations in the southern part of the state or associations or organizations that assist with businesses to find financing and this will be a remote virtual event so online they will be giving a small brief pitch about what they do what services they offer and hopefully businesses can connect with them and find opportunities for financing as well one more mention our collateral assistance program is open this is a program that can help to have additional collateral on your commercial loan project if you do have a deficiency in your your commercial loan we can assist with collateral by providing a cd so if you have any questions about any of these please contact us or go to these links and here is a slide that shows our edd regional reps we have reps in all of these regions of the state these are the boots on the ground of our department and can help answer any questions and connect you to resources through our department or partners like nmfa as well so i want to turn it over to marquita russell with the new mexico finance authority and marquita you should have the ability to share your screen all right give me a second here i think all right do i have it you've got it take it away wonderful thank you so much and thank you joanna for hosting us today we very much appreciate the opportunity uh to tell a little bit about the small business recovery loan fund again my name is marquita russell i'm the chief executive officer of the new mexico finance authority and joining me today is adam johnson who is our chief of program operations we're going to go through uh today how you the the basics of the program how you access the application how you can use the application um and you know where you can find frequently asked questions that sort of thing but we don't want you to lose fact uh aside of the fact that we are here to answer your questions if you have any questions about your specific forms that you need to file or how your business may differ from the program and whether you still qualify please give us a call i've got here on my our on the screen our telephone number in santa fe which is 505-984-1454 or toll-free 1877 ask nmfa we're here to answer your questions we are working remotely so it will get you to a person that can answer your questions but if you have a you know if you're working during the day as most new mexico business owners are and you're doing this at night and there may not be a person available to answer your call you can send us an email at recovery nmfa.net and we'll be able to respond to you very quickly we have a number of people manning that particular email box and then lastly there are some helpful uh tips and tools on the website which is nmfinance.com so with that let me get started with the actual specifics of the small business recovery loan fund the this particular fund was created by the state as part of the 2020 special session it was signed into law by governor uh lujan grisham on july 7th 2020 we opened the program 29 days later on august 5th the program itself is a 400 million dollar uh loan program that offers low interest rate loans to businesses and nonprofits that experienced financial hardship due to the public health order particularly those that got hit hard in those early months of april and may the loan itself is a three-year loan it can be used for a variety of expenses it does not have any personal guarantee requirements there's no collateral required we don't do an underwriting on your business and you don't have payments for the first year to date we've provided loans of more than i think to more than 500 businesses from all corners of the state and we have a lot of capacity to make more loans and so we're here to answer your questions to make certain uh this is uh to find out whether or not this is a really good fit for you uh industries that have done very well in the program so far are restaurants hotels um art galleries things like that the loans will range in size up to 75 000 and we'll go through this the specifics in a little bit but it's based on your average monthly expenses but the smallest loan we've made so far is 496 dollars so there's no loan too small so you know feel free to apply another specific thing is that you can qualify for the program even if you've already gotten cares act funding there's a lot of concern or question about if you accessed either the ppp program at the very beginning of the public health order or you were successful in getting an idle loan through the sba that does not take you out of the running for this loan program and then lastly you can prepay your loan at any time there are no fees or penalties and if at the end of the three-year period you can't um make the full principal payment or any portion of the principal payment we can then kick out those payments for an additional three years so this really does provide you with a bridge to where to when your business operations will normalize so under the statute an eligible business is a new mexico business that closed or reduced operations due to the public health order and had annual gross revenues of less than five million dollars as determined by the 2019 federal tax and federal tax return and experienced that 30 percent decline in the monthly receipts for april and may of 2020 as compared to those same months in 2019. new mexico business can be either a for-profit business and any version of a for profit is eligible or it can be either a 501 c 3 nonprofit that would be a charitable organization or a 501c6 nonprofit and that would be a um an association like a chamber of commerce one of the eligibility requirements is that you demonstrate that you are a new mexico business that you are owned and controlled by new mexico residents so if you're a sole proprietor you need to demonstrate that you 100 of the assets of the business are either owned or leased by a new mexico resident if you're another kind of for-profit business then we need to see that at least 80 percent of the voting power and control resides with new mexico residents and for purposes of this statute new mexico resident is defined as an individual who's domiciled in the state for any part of the year or someone who's physically present in the state for 185 days or more during the taxable year so the loans themselves the terms are set out very clearly in statute you can qualify for two times your monthly average expenses not to exceed seventy five thousand dollars the interest rate is half of wall street journal prime which currently puts that interest rate at 1.625 percent and that'll be fixed during the life of the loan as i said earlier there are no collateral requirements there's no personal guarantees these are three-year loans with interest due annually and the principal due at the end of the third year and again as i mentioned earlier if there's a need to extend the payments at the end of that third year you have the option of extending them for additional three years at which point you start making these principal and interest payments monthly so how does this work let's say you have a coffee shop and you obviously were we're closed during most of april if not all of april and may and you need to continue to stabilize we're going to get a copy of your 2019 tax returns and you're going to need to list your total expenses and that includes your cost of goods sold and as adam will show you in a minute the application itself depending on the kind of business you are he can tell you in the application which business which tax form you're going to and what line items you're looking at but in this instance we have a three hundred thousand dollar uh total expense we've put down ten thousand dollars for depreciation and we received early on a 50 000 ppp loan so you'll see here that we have our total expenses less depreciation because that's a non-cash item and less the cares act loan to get you your total adjusted expenses divide by 12 and we get our average monthly expenses of 20 000 so your loan amount in this particular instance would be two times that or forty thousand dollars again your interest rate is fixed at half of prime rate which is 1.625 so this is what your scheduled payments would look like at the end of the first year which would be let's assume you close on november 1st end of the first year would be 650 and that's an interest-only payment a year later november 1st of 2022 you have another 650 payment and then again at the end of the third year you have not only your six hundred and fifty dollar payment but also that forty thousand dollar principal that was borrowed on november first of twenty twenty again you can extend those payments and in this instance if you were to extend the payment you'd keep that 1.625 interest payment and you would have 36 months of monthly principal and interest payments totaling about 1 1440. moss or menos at any point that you want to prepay a portion of that loan you're able to do that that would obviously change either your interest payment or the amount of principal you do at the end so that's how that works that's how you know how much you can qualify for the application which adam's going to walk you through is accessed through our website which is www.nmfinance.com the application will be open according to the the law until december 31st of 2020 couple of important things to note which is that this application system which is very easy to use is unfortunately not able to save your work so you need to make certain that you have available at the time you start this the documents you're going to need and you know enough time to complete the application if you are eligible your your loan process takes approximately 10 days uh we've done it much faster than that and we've i think we've funded them in as little as two days um it just depends on when you submit your application uh we fund twice a week so 10 days is a really good gauge but if you're ineligible you'll be notified as you complete the application or very shortly thereafter and again please call us if you have any questions we have people that are now very well versed in all the tax forms that you're using and can help point you to the right numbers and and give you some really good advice so the documents you're going to need again your 2019 business federal your federal tax return uh copies of the reports that you submit to the new mexico taxation and revenue department and these are the ones that reflect uh the receipts for the month of april and may of uh 2019 and 2020 because we're going to be looking for a 30 decline from both april to april and then again from may to may so those four months if you report monthly that'll be four reports if you report quarterly you would be report you could send us your um your fourth quarter april and may is reflected in your fourth quarter for 2019 and 2020. um or actually i'm sorry that's second quarter calendar year um for nonprofits you would actually submit uh your um your financial statements that show your profit and loss for the fiscal years that include those months and um nonprofits obviously have different fiscal years so just make certain that it includes the month of april and may of 2019 and 2020. you'll need to show us copies of your cares act loan this is to help make certain that you haven't somehow overstated what's due we ask that you put that in there so that we can help you calculate the right amount we have found more often than not that people have put down too much in that loan in that item a line item and then lastly your personal income tax returns and this is for anyone that has an equity ownership in it and that's to demonstrate that residency requirement that we talked about earlier you're going to be required to have a checking account at a federally insured financial institution at the time that you submit the application it needs to be in the name of the of the applicant of the business um and we will be using a system called plaid which is a fully secured and encrypted system that allows us to verify that the account is valid and is held in the name of the applicant we certainly wouldn't want someone pretending to be you to go in and have that money diverted someplace else so this is a really important part to keep both you as a business owner and us as the lender out of any fraud situation so we this is an important element for for fraud mitigation and again if you don't meet the loan qualifications you'll be prompted to continue to submit the information so that we can capture some really important information to give back to policymakers the lawmakers you know at the end of this they'll want to report as to who was able to qualify and who wasn't and if you weren't able to qualify why um so this it's important that you uh give us as much information as you can if you're even if you're ineligible so that we can maybe help get that program broadened for you in the future and then lastly the system that adam's going to walk you through here in a minute um formstack is a fully secure system and is uh uses only encrypted it encrypts the documents as it goes and your loan application itself and elements of your loan application are not subject to any sort of public disclosure the only thing that we can disclose are the names of the loan recipients and then everything else is done in broad demographic terms so with that adam i am going to attempt to change it to you for the next part thank you marketa let me grab my screen here can you see my screen yes sir we can great thanks everybody for joining us this afternoon to go over the small business recovery loan plan and the um application process that i'm happy to share with you today and what you see on my screen at the moment is actually the landing page for the small business recovery loan fund application i wanted to start here to show you the length since a bunch of additional useful resources that we've provided for applicants to make it successfully through the process so you can see the application is available in both english and spanish we have a number of different frequently asked questions as well as very easy to use videos as we all know most of our eyeballs tend to lean towards videos these days versus reading so we provided some of that on this page for folks to use to learn how to apply for the uh the loan fund and also how to connect their bank account we've also got some additional resources with regards to uh reducing pdfs and other useful tips and tricks um all of that is great but none is better than a real human to help you walk through the process so do make sure that you keep that phone number and email handy and we do have folks standing by to take questions and help you through the process we've designed a process with efficiency and fraud mitigation in mind that said we are by no means using algorithms to make decisions here and we are standing by to help folks through this process now my screen is a is a link i open directly from the website to the loan application we we do our best right from the beginning to communicate to the applicant not only the documents that are required depending upon the formation of the organization but also even just the amount of time that we would hope that you would set aside to allocate to this process as marquita mentioned one of the drawbacks if you will of this particular platform because it's got a comprehensive workflow process related to it is you cannot save the application now that said we've had incredible feedback from folks that this application is very user friendly and generally takes much less than the estimated time that we've provided in the instructions here as you sit down to get ready again we've provided the various documents uh listed here that you would need in order to be successful in the application um and in fact the very first question will ask you whether or not you have everything that you need to proceed with the application in a few instances we do get some answers to this question which is no and if that is the case then most of the application actually disappears and asks you to come back at another time you'll see a similar theme as the application proceeds on uh with respect to the specific qualification requirements from the statute of the small business recovery act the next question asks the applicant whether or not they are for-profit or non-profit and then proceeds to the type of formation that that non-profit or for-profit business is after this question is answered the application will take a specific form to uh to guide the user to get the correct documents and the specific places on those documents to be entered into the application of course um we do have folks available to help should that process not go perfectly but our hope is that we've communicated pretty clearly with the applicants as to everything that they need to be able to fill up then the next uh field because i've chosen an s corporation is to answer the question about whether or not the uh corporation is controlled and owned by at least 80 new mexico residents once you answer yes to this question it will proceed to ask you who the names of the officers and owners of the corporation are in this case in my hypothetical example i've got mr and mrs styles there a couple uh megan and jonathan uh they own a company called m j styles inc their business is styles salon as you'll know that some of the fields the majority of the fields in the application are required fields you'll find just a couple that are not required and those are designated by an asterisk that i wish was a little more visible but that is the asterisk there that uh is denoting that the fields are required um continuing on we do collect as you'll see throughout a little bit of information that helps us understand the where the small business recovery loan fund is being used most across the state of new mexico in particular we use the answer to the question about the county a physical location to gather demographic information um continuing on with contact information it is important that the individual filling out the application be the authorized officer for the business this is important because one of the final questions and then corresponding certifications should the loan be approved questions confirming that the ownership i'm sorry that the authorized officer is who they say they are and that they are authorized to sign on behalf of the business so point this out because we often have folks that help us in our business life with processes of this type and while i would not discourage folks from leveraging their various resources to do that it is important that the actual authorized officer be the person on the other side of the keyboard filling out the application and hitting the submit button as we continue on you'll notice that the revenue qualification with respect to the annual revenues not exceeding five million dollars is the next question and it's particular to the s corps here and you'll see that we've provided uh the specific form for the s corp the 1120s as it appears on page one line one of that document to help you navigate those tax forms that we also also love and adore um you'll note here similarly to the yes no question about uh proceeding and ownership that if this number exceeds the five million the application will not allow the user to proceed uh but does encourage you to submit the information that it has gathered so far so that we have it um in this case uh style salon does uh 500 000 in revenue there's a question about a technical service provider this question is particular there's language in the statute that provides for a portion of the fund to be used to help a technical assistance provider do things for a business with respect to ongoing marketing ongoing assistance with bookkeeping accounting legal aspects what it's not designed for is necessarily to have a technical assistance provider do this process on behalf of the applicant but instead uh is designed to if you were to partner with somebody perhaps at like a small business incubator or another individual that would sign up for this aspect of the program to assist the business in the long run with various aspects um they we we've not seen a lot of takers on on this portion of the program and the user of the application can just proceed by answering no to the question if the answer is yes then they are asked to provide the information related to that individual or organization the next qualifying question is referred to as the revenue and decline qualification and we have provided here a framework which is designed very closely along the language provided in the statute but we have also expanded upon the this portion of the calculation with respect to the quarterly and semi-annual filers however we do ask the applicant to fill in these fields regardless of the way that they file with the information for the month so if you were quarterly you would take that quarterly report um and divide it by three to get the numbers to provide into this field if you were semi-annually you would divide it by six and put them into this field um in the event that those averages are not working um necessarily maybe they're not is accurate maybe an average is not accurate for those reports meaning there's fluctuation contained within those months we have staff available to help with the calculations once it's been submitted but we do request that you would submit the information uh either as provided for monthly reporters or on average for quarterly and semi-annual reporters to help us get us get through the process at this point you you can see that the application is doing the calculation on behalf of the applicant style salon in april of 2019 did a hundred thousand dollars in sales in april of 2020 it was reduced by 80 percent uh in may of 2019 and 2020 the calculation is reduced by 90 and so the applicant can continue to proceed with the application with respect to qualification um after those questions that questions answered what occurs going forward and it was designed in mind to keep some information out of the system in particular sensitive information which would be a federal tax employer identification number or a social security number in the case of a sole proprietorship and so this field appears now that the applicant has made it past the qualification question the following fields is the last area in which the application is doing the calculations uh providing specific instructions as it goes through as marquita demonstrated in the powerpoint how we come up with the what's referred to as the average adjusted monthly business expenses and that's simply the total business expenses reported in 2019 again what we've done is provided the specific instructions as to how that appears on the tax return in this case it is on page 1 lines 2 and 20. it's the cost of goods sold along with the total deductions added together we back out the amount for depreciation again the specific instructions are provided and then lastly on question 20 we're looking for the reduction if any related to either the payment protection loans that have been received or the idle ones that have been received the rest of this portion these fields here are read-only but is doing the calculation on behalf of the applicant in this case what you can know is that the average adjusted monthly expense is just over 37 000 and when that's multiplied by two it's 74 166. uh the application does know that if the amount exceeds 75 000 then the in this case you can see if the loan amount from the ppp loan is 30 000 instead of 45 the adjusted expense goes up as does two times that but the maximum amount of the loan remains at 75 000 i realized i was hiding that field just a little bit so i'll show you here in the case that it's less than 75 000 it actually populates the number that was calculated in this field right above the following field is related to the selection of if any an institution that may be partnering with the finance authority to review the application we've provided here a list of various institutions around the state that have partnered with the finance authority if you do not have an individual or a bank cdfi or credit union that you work with that's not listed here then you can just simply answer the question my financial institution is not listed and the application will be processed by staff at the finance authority if you do have a preference and your institution is listed you can leave that there and we have contact information for those folks at the authority and we get them involved in part of the review process the anticipated use of funds fields on this this area is a combination of compliance as well as simply picking up the data and the uh estimated use of funds that the applicant foresees using the loan proceeds for the what's important to know is marquita discussed uh in the slides in the powerpoint is it is required by law that no more than 20 in the case of a for-profit business be used for the salaries of equity owners of the company and more succinctly put that at least 80 of the loan proceeds are used for something other than salaries for the owners um other than that what we're asking for is the uh information so that we can look at it from a reporting purpose we're not in any way going to be coming back and asking the uh successful applicants to demonstrate that they met all of these targets in the future we just want to know what the starting point is we come back in a different point in time to collect a survey on how it was actually used and make some comparisons and see if we can understand any interesting statistics that may come out of this fields these fields of questions uh the it continues on in a similar fashion with respect to reporting you will note that these fields are all required the next section requests information about the total number of employees as of march 1st of 2020 the total number of employees at the date of the application and then an estimate of employees in the future certainly we understand that nobody has a crystal ball with respect to how many employees any business will have a year from now or in march of 2021 however what we are trying to pick up is any kind of gauge of optimism or pessimism um throughout the state and again how this information is a start and point and for reporting purposes and that goes along the same lines for the industry codes as well as any diverse business classification that might apply to the business lastly we have a list of the plate i'm sorry not a list but i guess it's a list but it's also a place to attach the required documents this helps our applicant reviewers application reviewers essentially compare what's been put into the application to the supporting documents each one of these fields is required um and there's a place and these are specific to the type of application that's been received as you'll note here this is requesting an 1120s and the k1 schedule for the s corp for style salon um one of the things that we need that is required for each one of these applications that makes it to the approval phase is that we do a what's known as a soft business credit check not an individual credit check but a business soft check this has no impact on the credit score of a business or it's simply a pull a soft credit pull helping the finance authority look for any type of indicators on a credit report that would be in contrary to information provided in the application provided in the applications such as tax liens and or any evidence of any types of charge charge-offs related to three specific areas that we can discuss after we finish this demonstration demonstration and so on this this is a link here this will take you actually to another form in which you can sign the credit authorization form you download that form after you receive a special pin code to your email and then re-upload that form in the fields provided here and then lastly the certification statements these statements are provided to the applicant so they understand what they are agreeing to these statements the exact same statements that are in the actual loan agreement if the application is approved for funding um we wanted to provide these statements on the front end so that none of this is a surprise when you get to the funding and closing stage of the loan um and lastly and maybe not most importantly but certainly a special consideration and no we have a note here at the bottom about the next steps uh upon completion of the application the uh applicant will immediately receive a automated automatically generated email to the email address provided in the application it is going to give the user some information about how to track their application including the application request id number and also some specific instructions so that the applicant can securely link their bank account to the application as you'll know so far in the application we've not collected any bank information and that's a specific design for security purposes that that would be picked up after the process once the applicant receives that email they would click on a link provided in it this form here requests a little bit of information in order to link the application to the plaid process if you will um in the plaid process i'll just take a moment to demonstrate just a little bit because we have had various questions about this we essentially are using an external third party to verify the bank information via a a process kicked off by the applicant so the finance authority has no access directly to the information provided what we are doing is requesting that the applicant give authorization to this company known as plaid to transmit the uh secure banking information back to the finance authority this technology is pretty commonly used although i would say plaid is not necessarily a household name you'll find this technology behind a lot of banking to banking relationships that you are already used to it's also commonly used for uh processes like venmo and zell to communicate and confirm the relationships between banks and so the finance authority has chosen this software and platform to give the applicants and the finance authority some peace of mind about the transmission of the data this in this form it will take take you to another secure site to provide a couple of different ways of communicating the information after agreeing to provide this information back to the finance authority it will allow you to choose your bank and we found that the majority of new mexico banks are a part of the search engine if you will of of this platform however it's not necessary and we can use simply the routing and account information of the bank in order to get the information um if it is a partnering bank what it will do is um let's see let me grab a quick one trying to find one that's pretty common in new mexico it will take you to a place to provide your banking credentials and upon successful link it will take the information back over to the cloud form i'm sorry back to the um the banking forum i just showed you and then back to the application we do have as i mentioned earlier the ability if that's unsuccessful for you to follow another process to do what's called micro deposits and that's here all of this information is back on our website under the how to connect your bank account securely video provided and again we're available for questions and i think i'll stop there for other questions or anything you think i may have missed joanna or marquita uh i don't know that you missed anything let me get us back to the last page of our presentation um okay so that's this awkward moment of i can't figure out how to get us back to our presentation um the last page of our presentation really is just to remind folks that we have helpful tools at nmfinance.com which uh adam just walked you through and showed you um so please make certain that you um check that website look at all the links um again there's uh information available in both english and spanish so please let us know if you have additional questions we're certainly willing and able and and eager to help you get through that so with that um i think we are ready for questions i saw one question in the chat box about whether or not an idle loan is required to be deducted and the answer is yes the way that the lawmaker set up this loan they wanted to um you were to deduct from your monthly your average expenses the amount of monthly help you would have received from a sba loan either the ppp or the idle so that amount gets deducted so you start with your expenses including your cost of goods sold you deduct out um your depreciation and any uh cares act loans that you received grants are fine so you don't have to deduct out grants but you have to deduct out the amount of loans that you received that was the one question i saw okay great thanks marquita thanks adam and want to repeat that if you have questions please put those in the questions box on the right side of your screen and i've got some questions over here one of them addresses uh what the the loan proceeds could be used for and in this case this is from ezra can the loan be used for upgrading systems and moving forward and dealing in a coveted environment for business and the answer is yes so as long as it's related to operating your business and it's not more than and no more than 20 percent is going to pay owners of the business then you are eligible to use it as you see fit okay thank you marquita the next question that i had was this person is so i think we lost joanna's volume here let me jump into the questions that we're seeing here okay great thanks adam sure thing so one question we have is what would not qualify a business well there are that's a really good question so um if you are over 5 million dollars in annual revenues you would be ineligible um if you did not show if you couldn't evidence decline um for april and may of 2020 versus 2019 so you need a 30 decline in each of those months that would also make you ineligible and or if your business wasn't at least 80 percent owned by new mexico residents so um that's those are the three core ones there's one additional thing that we would mention which is that if you have outstanding tax liens that preceded the pandemic those will need to be clear those will need to be cleared up before we're able to make a loan to you and if you had collection efforts in 2019 so we're not considering 2020 but 2019 from either a telecommunications like your cell phone utilities or rent rent mortgage those three items we're looking for business uh where businesses that were put into collections or were charged off during 2019 for any one of those three creditors so we're not looking for personal information it is business information so those would be disqualifying events okay and then we have a couple other series of questions with respect to the 30 decline um quarterly semi-annually so i'll try to take those those together um so i mentioned earlier that we are able to process any type of crs report whether it's monthly quarterly or semi-annually we do encourage you to take the average of those in the event that it's quarterly or semi-annually to input into the application and then reach out to us and our you will certainly be hearing from us that's usually a one that we quickly turn around and have questions about with respect to making sure that the underlying receipts of the business or support those reports and so we we do have a way to get those types of reports through the process and we've done so successfully on many occasions and so there's no need to request from trd to convert anything from quarterly to monthly we can we can do that with quarterly um with respect to the uh months that are required the law is very specific to that the business receipts be as evidenced for april and may of 2019 and 2020 and the comparison where we are working closely with clients is in the event that the business is operating its accounting on a cash basis and say for example it did receive payments for services rendered in prior months and those have shown up in the reports we are working closely with businesses to see what other underlying documentation we can use to support to subtract those receipts from the gross receipts tax report out of those numbers so that we can justify and see the decline and we just make that a note in the system and have the underlying documentation we have had a few instances in which a business did not start until after april and may of 2019 and in those instances unfortunately we've not been able to get around the need for a report uh and the decline to be evidenced but we have been making many notes on these aspects of the law that have been challenging for new mexico business owners and have a list of recommendations to make it more accessible particularly along these lines of the revenue in decline qualifications so it is it is noted and we are sharing that feedback um as necessary in hopes to get some changes made in the upcoming session great thanks adam can you hear me okay yes okay apologies about that my audio cut out i had another question that that came in that is from a person saying that they need assistance filling out the small business application so where should they go they should certainly uh contact our offices um we have folks on staff that are fluent in english and spanish and so we're happy to talk to them about the process and see what kind of challenges that they're having so i think that's the best place to start in the event that they need more assistance than that the staff that they would contact can can point them in the direction of any technical service providers that have signed up i would also anticipate that whether or not some organizations like score or the various business incubators or chambers around the state haven't signed up i'm sure they'd still be willing to um to help any business owner with the process but i certainly would start with our team and the contact info provided in the slides thank you and i do have to say the questions that come through our office via email that we connect to nmfa the email response is pretty immediate that you're getting responses back to business owners so when i encourage people to use that email what was it can you repeat the email sure it's recovery at nm as in new mexico f a financeauthority.net great thank you we have a question from kristen saying that her business is registered in red river but the headquarters are in texas is this business eligible for the loan i guess could you repeat that question please thank you i think i missed that the business is located in red river yes is that what you said yes and the headquarters is in texas is this still eligible i i would expect yes because it's a business that's operating in red river they're paying red river they're paying gross receipts tax that they would be subject to it that the one question i would question the one thing that would come up is whether or not the they are 80 owned by new mexico residents so the fact that they may have headquarters you know someplace else you'd need to be showing that you have new mexicans owning the business and otherwise you just are subject to the same taxation and revenue department filings great thank you and one more question about this person has multiple companies can they apply for each company so that the short answer is yes what we would be looking for is the underlying tax documentation both at the federal level and the state level to show them as uh separate in the case of their uh reporting for purposes of gross receipts tax um and then to be able to um see that the annual revenues don't exceed the 5 million on an individual basis and also that we could get a clear picture of the expenses for purposes of the loan calculation also being individual okay great that sums up the questions that we got prior to the presentation you guys did an excellent job at getting to a lot of the questions that we received prior and i'm not seeing any additional questions that you haven't answered in the questions box so marquita or adam would you like to add anything before we sign off um just our thank you for um joining us today again nmfinance.com take a look at it if you have any questions please please get in touch with us we really want to make certain that we're here if you need us um and that's that's our goal is to make certain that you know that you have the option of participating in this program and i think that's what i would leave the folks with how about you adam i think that that's it um i did see a couple of final questions come in about the idle loans and the ppp loans um and just to to clarify we do need to reduce the calculation by the amount that's in the promissory note provided by sba and the lending the partner lending bank however we should specifically look at your case um and make sure that we're getting that that done correctly when you put in your application so please put in the numbers as provided and then staff will be in contact with you to make sure that we get it right great thank you so much and thank you marquita thank you adam and thanks to the nmfa staff for all that you're doing these guys are working tirelessly tirelessly and doing a really great job at getting information out to businesses so thank you so much for all your work and being such a great partner so thanks all who attended and if you have any questions for us or nmfa please reach out and we will assist you as best that we can thank you all be safe thank you joanna thank you you
