The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in New Mexico. This financial aid is intended to help offset economic losses caused by a drought that began on March 4.
The declaration includes several counties in New Mexico: Bernalillo, Catron, Cibola, Guadalupe, Lincoln, McKinley, San Juan, San Miguel, Sandoval, Santa Fe, Socorro, Torrance, and Valencia. Additionally, Apache County in Arizona is covered under this declaration.
The SBA’s Economic Injury Disaster Loan (EIDL) program is now accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits affected financially by the drought. However, the SBA cannot provide disaster loans to agricultural producers like farmers or ranchers unless they are small aquaculture enterprises.
These EIDLs can be used for working capital needs caused by the drought and are available even if there was no physical damage to the business or organization. The funds may cover fixed debts, payroll costs, accounts payable, and other bills not paid due to the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “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 3.62% for private nonprofits. These loans have terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement date.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955. Assistance via email is also available at disastercustomerservice@sba.gov. For those who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
Completed loan applications must be submitted no later than January 6, 2026.
The U.S. Small Business Administration aims to empower entrepreneurs with resources needed for starting and expanding their businesses or recovering from declared disasters through its network of field offices and partnerships.