Loans available for New Mexico business owners impacted by wildfires
ALBUQUERQUE, N.M. — Wildfires are not only having a devastating impact on homes in New Mexico. Businesses are suffering as well. Many have burned down, and others were forced to close due to evacuations and air pollution from wildfire smoke.
That’s why a panel of several government agency representatives and experts, led by the New Mexico Outdoor Recreation Division and the New Mexico Small Business Development Center, have listed options for New Mexicans who have lost money, equipment and property. There are multiple resources available to help with disaster response, and also to help prepare business owners for circumstances beyond their control.
Russell Wyrick joined the virtual panel, representing NMSBDC. He said the U.S. Small Business Administration has field representatives on the ground in New Mexico to help people secure grants and loans.
Physical Disaster Loans are specifically for burned property and equipment. They are designed to repair what was damaged and fill any gaps in insurance coverage.
Economic Injury Loans can be used as cash flow for businesses that may not have as many customers or are not making as much profit, due to a natural disaster.
Wyrick said SBA has long payment terms – up to 30 years –and low interest rates around 1-1.5%. The window to apply closes after 60 days.
“Just because you get approved doesn’t mean you have to take the money,” he said. “That’s important to understand. So if the SBA says, ‘yes, you’re approved for this,’ you’re approved up to 100K, 150K, whatever, that doesn’t mean you have to take it, but if you don’t – so if you don’t apply and you’re going down the road, hoping this grant will materialize or something will come in, and someone will come to the rescue, and you don’t, then you’ll miss that window.”
During the webinar, agency representatives and experts outlined several other sources of emergency funding, including loans, grants, and tax credits, as well as disaster interruption insurance policies and wildlife liability programs.
Click here for more information on SBA loans.