As used in the Small Business Recovery Act of 2020:
A. "authority" means the New Mexico finance authority;
B. "average adjusted monthly business expenses" means an amount equal to the quotient of:
(1) a business's total expenses for taxable year 2019, excluding expenses deducted pursuant to Section 179 of the United States Internal Revenue Code of 1986, as that section may be amended or renumbered, and expenses for depreciation and bonus depreciation deducted pursuant to the United States Internal Revenue Code of 1986, as determined from the business's federal income tax return for taxable year 2019, less the amount of any loan obtained by the business pursuant to Section 1102 of the federal Coronavirus Aid, Relief, and Economic Security Act; and
(2) twelve;
C. "community development financial institution" means a legal entity operating within the state that is certified as a community development financial institution by the federal community development financial institutions fund;
D. "loan servicer" means a federally insured depository institution or community development financial institution that assembles and submits the small business recovery loan documents to the authority;
E. "New Mexico resident" means an individual who is domiciled in this state during any part of the year or an individual who is physically present in this state for one hundred eighty-five days or more during the taxable year;
F. "ordinary and necessary business expenses" means all expenses, including expenses and capital expenses incurred to operate the business in compliance with a public health order;
G. "qualifying small business" means a business or nonprofit corporation that:
(1) has closed or reduced operations due to the public health order issued by the secretary of health on March 23, 2020;
(2) had an annual gross revenue of less than five million dollars ($5,000,000) as determined from the business's federal income tax return for taxable year 2019;
(3) during the months of April and May 2020, experienced one of the following:
(a) for a business entity other than a nonprofit corporation, a decline in the business's monthly gross receipts by more than thirty percent from the business's monthly gross receipts for that month in 2019, as reported monthly by the business to the taxation and revenue department; or
(b) for a business entity that is organized and operated as a nonprofit corporation, a decline in the business's monthly revenue by more than thirty percent from the business's monthly revenue for that month in 2019, as determined through accounting information that is provided by the business and certified to be accurate and information reported by the business to the federal internal revenue service for the previous year; and
(4) is organized and operated as a nonprofit corporation or is owned as follows:
(a) for a sole proprietorship, one hundred percent of the assets of the business are owned or leased by a New Mexico resident; and
(b) for a corporation, partnership, joint venture, limited liability company, limited partnership or other business entity, at least eighty percent of the total voting power of the entity and at least eighty percent of the total value of the equity is owned by one or more New Mexico residents; and
H. "service provider" means a nonprofit or governmental organization that provides interactive, technical assistance to small businesses, including:
(1) developing sustainable business practices;
(2) training in marketing, administration and financial management; and
(3) complying with legal requirements, licensing requirements and tax liabilities; and
I. "nonprofit corporation" means an entity organized pursuant to Section 501 (c)(3) or 501 (c)(6) of the Internal Revenue Service Code.
History: Laws 2020 (1st S.S.), ch. 6, § 2.
ANNOTATIONSEmergency clauses. — Laws 2020 (1st S.S.), ch. 6, § 13 contained an emergency clause and was approved July 7, 2020.
Cross references. — For federal Coronavirus Aid, Relief, and Economic Security Act, see Pub.L. 116 136.
For Section 179 of the Internal Revenue Code of 1986, see 26 U.S.C. § 179.
For Section 501 of the Internal Revenue Code, see 26 U.S.C. § 501.