Time is running out for small businesses and private nonprofit organizations in New Mexico that have been hit by last year's drought, starting November 1, 2024. The U.S. Small Business Administration (SBA) is sending out a final call for those eligible to apply for federal disaster loans before the November 25, deadline approaches. These Economic Injury Disaster Loans (EIDLs) exist to provide essential financial assistance to offset economic losses due to the severe dry spell that affected several counties.
Affected regions include multiple counties across New Mexico including Catron and Cibola, and extending to parts of Arizona and Texas, such as Apache County, Arizona and Andrews County, Texas, with businesses in these areas being encouraged to check their eligibility and apply without delay; applications are due no later than November 25, as reported by ein.az.gov. These loans are crucial in assisting small businesses and nonprofits with working capital needs, such as paying fixed debts, payroll, and accounts payable, that have been directly impacted by the drought even if there has been no physical damage.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster," as mentioned in the same release from ein.az.gov.
With terms up to 30 years and interest rates as low as 4% for small businesses and 3.625% for PNPs, loan amounts may reach up to $2 million based on the applicant’s financial condition to ensure that various business sizes can find a level of support that is proportional to their damage as noted by the SBA; an added benefit includes the deferred accrual of interest and payments, which are not required until 12 months after the initial loan disbursement. Business owners and nonprofit managers are encouraged to apply online at the SBA's dedicated disaster assistance web page. For further assistance, the SBA's Customer Service Center can be reached at (800) 659-2955 or via email at [email protected].
The SBA is also providing accommodations for individuals who are deaf, hard of hearing, or have a speech disability by recommending to dial 7-1-1 to access telecommunications relay services. The initiative ensures that all affected by the drought have the opportunity to seek the necessary funds to help mitigate their financial struggles during this recovery phase.
