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Floods

Low-Interest Disaster Loans Available to New Mexico Businesses and Residents

Strategic Insights

— 2 min read

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans to New Mexico small businesses, private nonprofit organizations, and residents affected by severe storms, flooding, and landslides in June. The disaster declaration covers Lincoln County, which is eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs). Businesses and nonprofits in adjacent counties are also eligible for EIDLs. The SBA offers loans up to $2 million to repair or replace damaged or destroyed business assets, and up to $500,000 to replace or repair primary residences.

Key Takeaways:

  • Small businesses and private nonprofit organizations in Lincoln County are eligible for Physical Damage Loans and EIDLs up to $2 million and $500,000, respectively.
  • Homeowners and renters in the affected areas may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances.
  • Applicants may be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes.
  • SBA's EIDL program is available to eligible small businesses, agricultural cooperatives, nurseries, and private nonprofit organizations, including those that suffered financial losses directly related to the disaster.
  • Interest rates can be as low as 4% for small businesses, 3.625% for private nonprofit organizations, and 2.813% for homeowners and renters, with terms up to 30 years.
  • Payments are not due until 12 months from the date of the first loan disbursement.
  • The SBA sets loan amounts and terms based on each applicant's financial condition.
  • Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, encourages businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA's mitigation loans.

Statistics:

  • $2 million: Maximum loan amount for businesses and private nonprofit organizations.
  • $500,000: Maximum loan amount for homeowners to replace or repair primary residences.
  • $100,000: Maximum loan amount for renters and homeowners to replace or repair personal property.
  • 20%: Maximum loan increase for mitigation purposes.
  • 4%: Minimum interest rate for small businesses.
  • 3.625%: Minimum interest rate for private nonprofit organizations.
  • 2.813%: Minimum interest rate for homeowners and renters.
  • 12 months: Time before payments are due after the first loan disbursement.
  • 30 years: Maximum term for SBA loans.
  • July 22: Date of the Presidential disaster declaration.
  • July 24: Date of the SBA announcement.
  • June 23: Date of the severe storms, flooding, and landslides.

Sources:

  • U.S. Small Business Administration (SBA)
  • Disaster Field Operations Center West

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