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 affected by drought conditions starting April 1. This relief effort is aimed at offsetting economic losses due to the ongoing drought.
The disaster declaration encompasses several counties in New Mexico, including Chaves, De Baca, Guadalupe, Lincoln, Quay, Roosevelt, San Miguel, and Torrance. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses directly related to the drought. However, it should be noted that these loans are not available to agricultural producers such as farmers or ranchers unless they operate small aquaculture enterprises.
EIDLs are designed to address working capital needs caused by disasters and can be utilized even if there was no physical damage sustained by the business or nonprofit organization. The funds from these loans may be used for fixed debts, payroll obligations, accounts payable, and other bills that remain unpaid due to the disaster.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated 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."
Eligible applicants can receive loan amounts up to $2 million with interest rates as low as 4% for small businesses and 3.62% for private nonprofits. The terms can extend up to 30 years with no interest accruing or payments required until 12 months after the first loan disbursement date. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster. For further information on SBA disaster assistance or application procedures, individuals may contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available via dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted by February 2, 2026.
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