Santa Fe, N.M., April 14, 2020 (GLOBE NEWSWIRE) -- Sun Mountain Capital announced today that applications are now available to New Mexico companies seeking emergency loans from the $100 million New Mexico State Recovery Fund, L.P., which was unanimously approved by the New Mexico State Investment Council (SIC) in public meetings on March 24th and April 7th.
Sun Mountain Capital also announced eligibility requirements for the loans, and directed companies to visit www.sunmountaincapital.com to review additional information and begin the application process.
“We will work with companies as quickly and expediently as possible to determine if they qualify for funding under the criteria established by the State Investment Council,” noted Brian Birk, managing partner of Sun Mountain Capital, which is responsible for the fund’s management. “As longstanding partners of the New Mexico business ecosystem, we are extremely sensitive to the economic hardship that businesses in our state are facing, and we’re fully committed to supporting them in the recovery process.”
The loans were established to provide access to emergency funds to businesses whose operations have been impacted by COVID-19 to help them survive and retain as many employees as possible during the crisis. The loans are intended to augment other federal and state economic relief and recovery programs and are designed to have greater impact by covering longer periods of payroll and other operating expenses.
Eligible loan applicants include New Mexico-based businesses that (i) were creditworthy prior to the pandemic and (ii) can demonstrate the financial strength to recover and a strong plan for doing so. Eligible applicants also must:
- Have 40 or more New Mexico employees
- Demonstrate negative COVID-19 economic impact to their business
- Commit to spending at least 80% of loan proceeds in New Mexico
- Demonstrate intent to retain as much headcount as possible over loan life
- Have no affiliation with Sun Mountain Capital, the New Mexico SIC, or any staff of either organization
Loans between $500,000 and $10 million will be available to companies that qualify, and terms will be designed to meet the financial needs of approved applicants. Repayment terms will be tailored to fit the projected business recovery. Key loan terms and numerical ranges may include, but are not limited to:
- Size: Based on 2019 operating expenses but not to exceed $10 million
- Annual Interest Rate: Between 3%-10%, based on the company’s credit attributes
- Repayment Terms: Generally, between 2-4 years and reflecting projected repayment ability, based on the applicant’s pre-crisis profitability. Most loans will include a 1-year period of cash interest/principal deferment. There are no prepayment penalties.
About Sun Mountain Capital
Sun Mountain Capital is a diversified private equity firm with investment strategies in both direct investment and fund of funds programs spanning venture capital, private credit and growth equity. Sun Mountain Capital was founded in 2006 by a team of senior investment professionals. The team has continued to grow since the Firm's founding, and today encompasses a broad network for deal sourcing and investment diligence and analysis. Post investment, the Firm provides value-adding investment management through board of director positions in portfolio companies and membership on Limited Partner Advisory Committees.
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