For a Senate vote, a bill is in the queue for approval. If it is approved, then an amount of $200 million will be approved. It will be providing this fund to various businesses which have seen a tremendous decline due to the pandemic. When the Covid-19 first hit the U.S. in March 2020, a shutdown was implemented, due to which the business suffered heavy losses. Some did move to online platforms, but the sales weren’t enough. Some businesses had to pay bills like rent even though these earnings were zero. To help such businesses, many bills have been introduced, and this will be yet another one.
The Senate Of New Mexico Considers $200 Million As Grants
This is scheduled voting for the bill on Thursday. This bill will be answering to the individual grants of many businessmen of upto a maximum of $100,000 without any need for repayment. This will be paid to compensate for the rent, mortgage obligations, lease and other reimbursements. This arrangement will test the boundaries of the State Constitution’s law against anti-donation amendments which prevents the government from involving corruption. Hence acts as anti-corruption law.
This proposal was from Brian Egolf, Democratic House Speaker and Christine Chandler of Los Alamos; an allied state representative has presented the long list of bills aimed at the economy’s revival. New Mexico is coming out from this Covid-19 pandemic restrictions. As they are emerging from the emergency health orders Gov. Michelle Lujan Grisham put up; it is now time to revive the sunken economy to spring back to life with such grants and reliefs.
Earlier this week, a Senate committee has rejected this bill’s provisions, which would be permanently boosting payouts for business relocations and expansion from the state’s closing funds. The provisions after reconsiderations will be sent for reapproval. After the Senate’s approval, this bill will be taken to the House to consider for the amended initiative.
When you have no source of income since your shop is closed, and you need money for survival, we need to make these new opportunities for the people of New Mexicans in every way, form or shape. As the Senate budget committee’s lead will be endorsing this grand program, Sen. George Muñoz of Gallup said on Wednesday.
At the prospect of this bill, Republican Sen. Pat Woods of Grady bristled on this bill that there are not many assurances that will help these businesses reopen.
At least, these grants that are proposed are contingent on rehiring or hiring of the employees. A similar grant with more restrictions was introduced, which was under the Local Economic Development Act, which are exempted from these constitutional provisions. This will be prohibiting donation that is directly paid from the taxpayer dollar. This is done as an anti-corruption measure.
This house-approved version of this bill would help in keeping the applications super confidential with an expectation that is related to the transparency provisions in this state with inspection of all the public records act. These proposed amendments, which the Senate presented, do away in these confidentiality provisions.
The five state senators owned by businesses got benefit from the last year’s business grants that the Legislature enacted. And this was underwritten by the federal government’s relief funds as per the documents obtained under the provisions of the public records act by The Associated Press.
On another note, state legislators are bringing up advancing proposals with minimum interest on the loans to businesses.