New Mexico Small Business Grants: A Path to Success

For new Mexico small business grants to ensure eligibility, it is encouraged to submit the application early because of the limited application period. Starting and growing a small business can be both exciting and challenging. Entrepreneurs often face financial hurdles that can hinder their dreams of building a successful venture.

New Mexico Small Business Grants: A Path to Success
Starting and growing a small business can be both exciting and challenging. Entrepreneurs often face financial hurdles that can hinder their dreams of building a successful venture.

 

Fortunately, New Mexico offers a range of grants and financial assistance programs specifically designed to support small businesses.

In this article, we’ll explore these opportunities and shed light on how they can benefit entrepreneurs in the Land of Enchantment.

New Mexico Small Business Development Center (SBDC)

The New Mexico SBDC is a valuable resource for small business owners. It provides no-cost counseling to help entrepreneurs build a firm business foundation and develop essential entrepreneurial skills.

Whether you’re just starting out or looking to expand, the SBDC can guide you through the process, offer expert advice, and connect you with relevant resources.

State and Federal Loan Programs

a. New Mexico Small Business Investment Corporation (NMSBIC)

The NMSBIC has committed an additional $35 million at low interest rates to assist small businesses impacted by COVID-19.

These enhanced existing loan programs aim to meet the needs presented by the pandemic and recovery. Entrepreneurs can access these funds to cover operational costs, invest in technology, or expand their businesses.

b. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL)

While the COVID EIDL program ceased accepting applications on December 31, 2021, the disaster EIDL program continues to be available for businesses affected by other publicly declared disasters.

If your business faces economic challenges because of unforeseen events, explore the SBA’s disaster loan options.

Nonprofit Lending Partners

Several nonprofit organizations collaborate with the NMSBIC to provide emergency business loans. These loans, some specifically designed for pandemic recovery, offer financial relief to eligible businesses. Here are some key partners:

  • The Loan Fund provides emergency loans to businesses.
  • Dream Spring supports entrepreneurs with low-interest loans.
  • The Lift Fund offers financial assistance to small businesses.
  • Homewise: Provides loans in designated areas.
  • RCAC serves rural areas of New Mexico.

Small Business Recovery Loan Fund

The WESST Small Business Recovery Loan Fund offers low-interest loans to eligible Covid-impacted businesses. Interest rates are set at one-half of the prime rate, and terms allow for deferred payments.

If you received a Small Business Recovery Loan in 2020, you can reapply for additional funds or update your current loan to take advantage of the new terms.Regional Loan Resources

Working Now Revolving Loan Fund provides small loans of up to $10,000 to businesses affected by the pandemic. Additionally, these loans, secured by a personal guarantee rather than collateral, are available in counties such as Colfax, Los Alamos, Mora, Rio Arriba, San Miguel, Santa Fe, or Taos. Moreover, interest is deferred for six months, providing much-needed breathing room for entrepreneurs.

Stay Informed

As new grant and loan programs become available, stay informed by subscribing to the Finance New Mexico newsletter. Continuously updated information ensures that you don’t miss out on opportunities to secure funding for your small business.

New Mexico’s commitment to supporting small businesses is evident through its diverse grant and loan programs.

Whether you’re seeking capital for startup costs, expansion, or recovery, explore these resources and take advantage of the opportunities that can propel your entrepreneurial journey forward.

Remember, success begins with knowledge, determination, and access to the right financial tools.Whether you’re seeking capital for startup costs, expansion, or recovery, meanwhile explore these resources and take advantage of the opportunities that can propel your entrepreneurial journey forward.

Moreover, remember, success begins with knowledge, determination, and access to the right financial tools.

Frequently Asked Questions (FAQs) about New Mexico Small Business Grants

1. What is the Small Business CARES Relief Grant Program?

Firstly, the State of New Mexico established the Small Business CARES Relief Grant Program during the November 2020 Special Session. Secondly, its purpose is to provide $100 million in grant funding to small businesses in New Mexico facing financial hardship because of the pandemic.

Administered by the New Mexico Finance Authority (NMFA), this grant program aims to support businesses during challenging times. Grants are awarded without any obligation to repay the funding, making them a lifeline for struggling entrepreneurs.

2. Who is eligible for Small Business CARES Relief Grants?

Small Business CARES Relief Grants are available to:

  • For-profit businesses and nonprofit organizations with 100 or fewer employees.
  • Entities meeting one of the following criteria:
    • Sole proprietors owned by a New Mexico resident.
    • Corporations, partnerships, joint ventures, limited liability companies, or limited partnerships with at least 51% ownership by New Mexico residents.
    • Nonprofit corporations designated as 501©(3), 501©(6), or 501©(8) entities, or organizations serving past or present members of the Armed Forces of the United States.

3. How Does It Differ from City and County CARES Grants?

The Small Business CARES Relief Grant is a distinct program from grants offered by NM cities and counties. Firstly, businesses can apply for this grant even if they’ve already received funding from local sources. Secondly, eligibility is based on meeting guidelines, regardless of prior state or federal assistance. Additionally, the application period is limited, so early submission is encouraged.

4. When can I apply?

The application window for Small Business CARES Relief Grants opens at noon on December 7 and closes at noon on December 18. Applicants should submit only one application, as duplicate submissions will not be reviewed.

5. What expenses can I cover with the grant?

The grant can be used for:

  • Regular business expenses cannot be covered without additional assistance because of revenue losses caused by the pandemic.
  • Expenses related to the pandemic, such as PPE or retrofitting a business to meet COVID-19 safety guidelines.

6. Is it first-come, first-served?

The grant applications is funded in three rounds to ensure businesses applying later still have a chance:

  • Round 1: Applications submitted by noon on December 10: $40,000,000.
  • Round 2: All applications submitted by noon on December 15 and unawarded Round 1 applications: $35,000,000.
  • Round 3: All applications submitted by noon on December 18 and unawarded applications from Rounds 1 and 2: $25,000,000, plus any unused allocated funds.

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