Governor signs pandemic recovery bill with $600 rebates

Mar. 3—SANTA FE — Gov. Michelle Lujan Grisham has signed into law a $200 million relief bill aimed a helping hard-hit New Mexico essential workers and restaurants through the final throes of the COVID-19 pandemic.

The governor also signed legislation expanding a small business loan program authorized last summer that, in its initial form, set qualifying guidelines that many businesses struggled to meet.

Both bills signed Wednesday are part of a broad million pandemic recovery package that has passed both the House and Senate by overwhelming vote margins during the ongoing 60-day legislative session.

The measures took effect immediately Wednesday upon being signed by Lujan Grisham, who described the state's pandemic stimulus efforts as among the nation's most sweeping.

"This pandemic has been devastating for everyone, but the pain has been spread unequally," the Democratic governor said. "My hope is these economic relief efforts reach those who need them most, and my commitment is New Mexico will continue to step up and support those who need it now and in the future as we build out a successful and sustainable recovery."

One of the measures signed Wednesday, Senate Bill 1, authorizes $600 rebates for New Mexico workers who make less than $15 an hour and qualify for a state Working Families Tax Credit. That could include employees who have been at the front lines of the pandemic working at grocery stores, hospitals and other businesses.

However, only U.S. citizens or legal permanent residents would be able to receive the hazard pay bonus that would cost the state an estimated $110 million, according to a financial analysis of the bill, meaning seasonal workers and some immigrants would not qualify.

The bill also authorizes a four-month tax holiday — starting March 1 — for restaurants, breweries, food trucks and other dining establishments.

The tax holiday would technically be a gross receipts tax deduction for restaurants, allowing them to retain tax payments. It would cost an estimated $90 million, as city and county tax declines caused by the policy would be covered by the state.

Across New Mexico, the pandemic and restrictions enacted in response to it in an attempt to slow the spread of the virus have taken a toll on parts of the state's economy.

Although restaurants in most of the state's 33 counties have recently been allowed to reopen indoor dining at limited capacity due to reduced COVID-19 spread, many are still facing financial uncertainty.

Meanwhile, the other bill signed by Lujan Grisham, Senate Bill 3, will overhaul a loan program administered by the New Mexico Finance Authority that has already issued more than $40 million in loans.

In addition to program changes aimed at making it easier for businesses to qualify, the maximum loan size will be increased to $150,000 — up from $75,000 — and the deadline for loan applications will be extended to May 2022.

Up to $460 million will be available for loans, with money coming from the state's Severance Tax Permanent Fund.