SMALL BUSINESS DISASTER RELIEF PROGRAM

HB0237

HOUSE BILL 237

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Anita Gonzales

AN ACT

RELATING TO PUBLIC FINANCE; CREATING THE SMALL BUSINESS
DISASTER RELIEF PROGRAM; PROVIDING GRANTS TO SMALL BUSINESSES
LOCATED IN AN AREA DECLARED BY THE GOVERNOR AS A DISASTER IN
CERTAIN CIRCUMSTANCES; CREATING THE SMALL BUSINESS DISASTER
RELIEF FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
[
NEW MATERIAL
]
SMALL BUSINESS DISASTER RELIEF
PROGRAM.--

A. The "small business disaster relief program" is
created to provide grants to small businesses located in an
area declared by the governor as a disaster in the absence of
funding from the federal emergency management agency or
reimbursement from an insurance policy. By July 1, 2026, the
department may award a grant to a small business for:

(1) operating expenses, including payroll,
rent and mortgage, utilities and insurance expenses;

(2) replacement or repair of property owned by
the business; and

(3) other business expenses resulting from the
disaster.

B. To receive a grant, an applicant shall apply to
the department on forms and in a manner prescribed by the
department. An application shall include:

(1) a description of the business and the
impact of the declared disaster on the business's operations;

(2) the number of people employed by the
business; and

(3) a statement of all existing sources of
money and assets held or prospective money available to the
business, including:

(a) account balances;

(b) lines of credit;

(c) state, federal and other grants
awarded, anticipated to be awarded or applied for by the
business;

(d) a demonstration that the proposed
use of the funds will meet one or more of the purposes provided
in Subsection A of this section; and

(e) the amount of the grant requested.

C. The department shall determine, through a
competitive review process pursuant to rules promulgated by the
department, which small businesses are approved to receive a
grant. The department may adjust the amount of money requested
based on its determination of the reasonable costs of the
proposed use. Once the applications are approved, the
department shall promptly offer each applicant a grant,
provided that funds are available.

D. Prior to December 1, 2026 and each succeeding
December 1 thereafter, the department shall submit a report to
the legislative finance committee, which shall include:

(1) the total number of grants made pursuant
to this section;

(2) the total number of grant applications;

(3) the average amount of money provided to a
recipient of a grant;

(4) the total number of employees currently
employed by a business that received a grant; and

(5) the industries and types of business
entities represented by grant recipients.

E. The department shall promulgate rules to
administer the small business disaster relief program. The
rules shall include provisions to:

(1) establish procedures for review,
evaluation and approval of applications for grants; and

(2) accord priority attention to small
businesses with the greatest financial need.

F. As used in this section, "department" means the
economic development department.

SECTION 2.
[
NEW MATERIAL
] SMALL BUSINESS DISASTER RELIEF
FUND.--The "small business disaster relief fund" is created as
a nonreverting fund in the state treasury. The fund consists
of appropriations, gifts, grants and donations. The economic
development department shall administer the fund, and money in
the fund is appropriated to the department to administer the
small business disaster relief program grants pursuant to
Section 1 of this 2026 act. Disbursements from the fund shall
be made by warrant of the secretary of finance and
administration pursuant to vouchers signed by the secretary of
economic development or the secretary's designee.

SECTION 3.
APPROPRIATION.--One million dollars
($1,000,000) is appropriated from the general fund to the small
business disaster relief fund for expenditure in fiscal year
2027 and subsequent fiscal years for the economic development
department
to administer grants pursuant to the small business
disaster relief program. Any unexpended balance remaining at
the end of a fiscal year shall not revert to the general fund.

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