In response to a Presidential disaster declaration issued on July 22, the U.S. Small Business Administration (SBA) announced that low-interest federal disaster loans are available to New Mexico small businesses, private nonprofit organizations, and residents affected by severe storms, flooding, and landslides beginning June 23.
The disaster declaration covers Lincoln County in New Mexico, which is eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Adjacent counties such as Chaves, De Baca, Guadalupe, Otero, Sierra, Socorro, and Torrance are eligible to apply only for SBA EIDLs.
Businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace disaster-damaged real estate and other business assets. Homeowners may apply for loans of up to $500,000 to repair their primary residence and up to $100,000 for personal property replacement.
Applicants might be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes. Eligible improvements include insulating pipes and installing storm windows.
The EIDL program is available for small businesses impacted by financial losses due to the disaster. "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings from the SBA.
Interest rates can be as low as 4% for small businesses, 3.625% for PNPs, and 2.813% for homeowners with terms up to 30 years. Interest does not accrue until 12 months after the first loan disbursement.
Federal-State Disaster Recovery Centers will provide one-on-one assistance when they open in affected areas. For more information or assistance with applications, visit sba.gov/disaster or call (800) 659-2955.
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