SBA offers loans to New Mexico businesses hit by drought

SBA offers loans to New Mexico businesses hit by drought

Economics
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Diedra Henry-Spires SBA Senior Advisor for COVID Programs | www.sba.gov

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The U.S. Small Business Administration (SBA) has announced the availability of low interest federal disaster loans to support small businesses and private nonprofit organizations in New Mexico. These entities have suffered economic losses due to the drought that began on November 1, 2024.

The disaster declaration includes Catron, Cibola, Chaves, De Baca, Doña Ana, Eddy, Grant, Guadalupe, Hidalgo, Lea, Lincoln, Luna, Otero, Roosevelt, Sierra, Socorro, and Torrance counties in New Mexico. It also extends to Apache, Cochise, and Greenlee counties in Arizona, and Andrews, Cochran, Culberson, El Paso, Gaines, Hudspeth, Loving, Reeves, Winkler, and Yoakum counties in Texas.

The SBA’s Economic Injury Disaster Loan (EIDL) program under this declaration is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly linked to the drought. It does not extend to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

EIDLs can be used to cover working capital needs such as fixed debts, payroll, and bills that the disaster has impacted, even if no physical damage occurred.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, said, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years, with interest accruing and payments starting 12 months after the first loan disbursement. The SBA sets loan terms based on the financial condition of each applicant.

For more information and to apply, potential applicants can visit sba.gov/disaster, call SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. Telecommunications relay services are available for those who are deaf or hard of hearing by dialing 7-1-1.

The deadline for submitting completed loan applications is November 25.

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