The U.S. Small Business Administration (SBA) has announced the offering of low-interest federal disaster loans for small businesses and private nonprofit (PNP) organizations in New Mexico that have experienced economic losses due to the drought starting April 8.
The declaration includes New Mexico counties such as Bernalillo, Cibola, Colfax, Guadalupe, Harding, Los Alamos, McKinley, Mora, Quay, Rio Arriba, San Juan, San Miguel, Sandoval, Santa Fe, Taos, and Torrance. It also covers Colorado counties Conejos and Costilla.
These SBA Economic Injury Disaster Loans (EIDL) are now available for small businesses, agricultural cooperatives, nurseries, and PNPs that have incurred financial losses tied to this drought. The SBA does not provide disaster loans to agricultural producers, farmers, or ranchers, excluding small aquaculture enterprises.
EIDLs, intended for working capital needs caused by the disaster, are accessible even if there is no physical damage to the business or PNP. They can be used for expenses such as fixed debts, payroll, accounts payable, and other obligations affected by the drought.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “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.”
Eligible loans can amount to a maximum of $2 million. Interest rates are as low as 4% for small businesses and 3.625% for PNPs, with terms as long as 30 years. The loans do not accrue interest, and no payments are required until 12 months after the date of the first loan disbursement. Loan amounts and terms are determined based on the financial condition of each applicant.
Those interested in applying can do so online at sba.gov/disaster. Additional inquiries can be directed to SBA’s Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov. Telecommunications relay services are available for individuals who are deaf, hard of hearing, or have a speech disability by dialing 7-1-1.
Completed loan applications should be submitted to the SBA by December 15.
The U.S. Small Business Administration is a resource for small businesses and entrepreneurs, providing them with resources to start, expand, or recover from declared disasters. More information can be found at www.sba.gov.