Low-Interest Disaster Loans Available for Private Nonprofit Organizations in New Mexico

The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans to private nonprofit organizations (PNPs) in New Mexico and the Mescalero Apache Tribe affected by severe storms, flooding, and landslides starting June 23. The disaster declaration covers the New Mexico counties of Doña Ana, Lincoln, and Otero, as well as the Mescalero Apache Tribe. PNPs providing non-critical services of a governmental nature are eligible to apply for both business physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.

Key Takeaways:

• The SBA is providing low-interest disaster loans to private nonprofit organizations in New Mexico and the Mescalero Apache Tribe affected by severe storms, flooding, and landslides.
• PNPs can borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery, and equipment, inventory, and other business assets.
• Eligible PNPs include faith-based organizations, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
• Applicants may also be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes.
• EIDLs are available for working capital needs caused by the disaster and can be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
• The loans have interest rates as low as 3.625% with terms up to 30 years, and interest does not begin to accrue until 12 months from the date of the first loan disbursement.

Statistics:

• Up to $2 million available for business physical damage loans.
• Up to 20% of physical damage available for loan increase for mitigation purposes.
• Interest rates as low as 3.625%.
• Terms for loans up to 30 years.
• 12 months until interest starts to accrue.

Sources:

• Disaster Field Operations Center West (August 18, 2025)
• U.S. Small Business Administration (no date)