Federal Funding Opportunities Announced for Small Businesses in New Mexico Hit by Summer's Drought9/11/2023 ![]() Small businesses in New Mexico counties impacted by recent drought conditions may be eligible for federal financial support. The U.S. Small Business Administration has announced that the low-interest federal disaster loans are particularly applicable to small nonfarm businesses, small agricultural cooperatives, and small businesses engaged in aquaculture. The funding opportunity also extends, according to an SBA press release, to “most private nonprofit organizations of any size.” According to the National Centers for Environmental Information, drought conditions throughout most of New Mexico this summer have been classified as either extreme or severe. The situation has been particularly critical in the state’s south central Lincoln County, with just under 90% of the land mass defined as being under drought conditions, according to the site U.S. Drought Monitor. The numbers have been equally dire for the nearby counties of Chaves, De Baca, Guadalupe, Otero, Sierra, Socorro, and Torrance. Focusing specifically on small businesses in those counties, the SBA program is making available up to $2 million in what are officially called Economic Injury Disaster Loans for support. In a statement, Jeffrey Lusk, head of the SBA’s center west disaster field operations, said eligibility for the loans takes in “both the economic input of businesses dependent on farmers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster.” Loan eligibility is additionally based on the “financial impact of the disaster only, and not on any actual property damage,” added Lusk. The loans carry with them an interest rate of 4% for businesses and 2.3% for private nonprofit organizations, with maximum terms of 30 years. Late last month, Secretary of Agriculture Tom Vilsack officially designated New Mexico’s summer 2023 drought conditions as an agricultural disaster. Once such a designation was declared, the SBA made Economic Injury Disaster Loans available to counties impacted. The deadline for loan applications is set for April 29, 2024. By Garry Boulard
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