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New Mexico Small Business Loans


Small business owners are an important part of New Mexico’s state economy. Did you know that small businesses employ more than half of the state’s private workforce?

But employing all these people costs money. If your small business needs a little help getting the capital it needs to operate, keep reading.

How a Small Business Loan Can Help Your Business in New Mexico

Small business loans can be helpful for hiring employees, but that’s just the tip of the iceberg. You can use the loan funds to invest in marketing, buy inventory, get equipment, or even acquire another business.

If you are going through a low period, financing can help you until things pick up. You can take out a loan to buy commercial real estate or a company car.

Types of small business loans to choose from

Small business loans come in many shapes and sizes, and there are dozens of different lenders in each category. Check out some of your loan options in New Mexico.

SBA Loans

The United States Small Business Administration supports small business loans with low interest rates. These loans can be used for working capital, to purchase real estate or to cover operating expenses. Generally, you need to be in business for at least two years and have decent credit to qualify.

Bank loans

Another option for low interest loans is a term loan from a bank or credit union. These are generally only open to borrowers with good to excellent credit.

Lines of credit

Another option offered by banks and credit unions (as well as some online lenders) is a line of credit. Whereas with a loan you get all the money up front and then start paying off the balance, with a line of credit you have access to a certain amount of money and don’t have to to borrow. Take what you need and pay it back. If you need more later, you can borrow more.

Merchant Cash Advance

For those who don’t have the good credit it takes to qualify for the above options, a merchant cash advance is worth looking into. It is not really a loan but rather an advance on future sales. This option may have higher interest or fees.

Small Business Loan Options for New Mexico

Now let’s look at some of the lenders you can work with to get financing like the one we discussed.

SBA loans in New Mexico

Bank loans in New Mexico

Lines of credit in New Mexico

Merchant Cash Advances in New Mexico

What it takes to get approved for a small business loan

The qualifications you’ll need to get a small business loan will depend on the type of loan you apply for and the amount you want to borrow.

Typically, lenders look at your credit scores. To qualify for a bank or SBA loan, you will need good to excellent credit. If you don’t, alternative lenders who offer short-term loans or merchant cash advances may look at other criteria, such as income.

For bank and SBA loans, you will need to be in business for at least two years. Startups can have difficulty getting approved.

If you find you are not qualified for the type of financing you want, consider building your business and personal credit so you have more options.

How to choose the right loan for your small business in New Mexico

Finding the right loan program is of utmost importance when you are a small business. Think about how you want to use the money. Ideally, this investment would help you earn more money so that you can easily repay the loan.

Then see what you are entitled to. The lower the rate you pay, the lower the cost of financing.

It’s important that you budget for your monthly loan payment, because if you borrow too much, you may not be able to afford to pay it back, and you may not repay the loan.

Small Business Grant Options for New Mexico

In addition to small business loans in New Mexico, there are also grants offered by nonprofits and local governments that qualifying businesses can apply for.

All Together NM Fund Small Business Grants

Businesses with five fewer employees may qualify for grants of up to $5,000 through the All Together NM Fund.

Nav Small Business Grant

Each quarter, a business receives $10,000 and finishes with $5,000 in Nav’s Small Business Grant.

Amber Grant for Women

Every month, a woman-led business receives $10,000 to help grow their business with the Amber Grant, and every year there’s a $25,000 winner.

Additional Resources for New Mexico Small Businesses

Looking for business resources to help you grow as an entrepreneur? There are many technical assistance programs and economic development resources in New Mexico that offer training, workshops, and networking opportunities.

Small Business Development Center

The New Mexico SBDC offers a wealth of resources, including training on obtaining government contracts, international trade, and environmental regulations.

New Mexico Finances

Finance New Mexico offers workshops on a variety of topics, including social media, marketing, and finance.


At SCORE, you can get free mentorship, find help developing your business plan, and attend free workshops and training to grow your business.

From Albuquerque to Santa Fe, New Mexican entrepreneurs have so many resources to help them start, run and grow their businesses. It’s just a matter of choosing what’s right for your business.

This article was originally written on February 4, 2022.

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