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<\/a>John Woosley, CPA and U.S. Small Business Administration New Mexico District Director<\/p><\/div>\n
At a time when banks are loath to lend money to other banks, New Mexico\u2019s rural entrepreneurs may wonder if it\u2019s even worth trying to obtain the credit they need to stay in business.<\/p>\n
That\u2019s where the Small Business Administration and its partners come in with programs to help launch and build rural businesses and to help rural innovators overcome the special problems posed by distance from customers, markets and workers and the lack of a telecommunications infrastructure.<\/p>\n
SBA\u2019s financial assistance consists of guarantees to banks to share the risk of lending to entrepreneurs. Just this year the agency instituted the Rural Lender Advantage initiative to foster economic development in rural areas by making it easier for smaller community banks to partner with the SBA to finance small businesses. With a maximum loan amount of $350,000, expedited approval, limited documentation requirements and the federal government\u2019s guarantee that the bank won\u2019t lose its entire investment in case of default, this tool makes community banks more willing to help New Mexico\u2019s rural entrepreneurs pursue their business goals.<\/p>\n
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Pick your loan<\/strong><\/p>\n The Patriot Express loan is the best deal available for those who are eligible: veterans, National Guard members and reservists, active-duty military in transition to civilian life, spouses of those in the military and spouses of service members who died in the military or of service-related causes. This express loan requires little documentation beyond the bank\u2019s own loan requirements and provides up to $500,000 with the full SBA guarantee (the government promises, in case of borrower default, to repay 85 percent of loans up to $150,000 and 75 percent of larger loans). An additional benefit to the borrower is the federal agency\u2019s lowest interest rate, and some New Mexico banks add sweeteners of their own to the Patriot Express deal.<\/p>\n The Community Express initiative focuses on economically stressed areas of the state. It is available in any part of New Mexico for up to $25,000, and many of the state\u2019s rural areas are eligible for up to $250,000. Community Express provides technical assistance for the borrower and expedited approval designed to get funding where it\u2019s needed as quickly as possible.<\/p>\n Microloans are for borrowers not ready to request a loan from a bank. Microlenders work closely with borrowers and are often able to make loans that banks can\u2019t. The SBA microloan program is managed in New Mexico by WESST Corp. The Loan Fund and ACCION New Mexico are also microlenders and are very active in rural areas.<\/p>\n Finally, SBA\u2019s 504 loan program backs larger ventures and those with a real-estate orientation. It has proved useful for manufacturing facilities and tourist development in rural areas with a maximum project amount of $10 million.<\/p>\n A map to the money SBA provides a small business Internet search engine at www.business.gov<\/span><\/strong><\/a> that provides information about starting a business \u2014 even in rural areas of the state. The SBA New Mexico Web site, www.sba.gov\/nm<\/span><\/strong><\/a>, provides access to a wealth of business planning and management tools, information about SBA financing programs, government contracting assistance and access to the many other services SBA provides nationwide.<\/p>\n Learn more about the SBA<\/span><\/strong><\/a>.<\/p>\n Article 55<\/p>\n Download 55_Government Backs Loans for Rural Businesses PDF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Available and quick loans that are backed by the SBA in New Mexico are profiled. Continue reading
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\nNew Mexico is the nation\u2019s fifth-largest state in terms of area, and it is the SBA\u2019s third-largest district. Nevertheless, nearly every New Mexican lives within 100 miles of one of the 30 places where SBA or its partners provides management and technical assistance in New Mexico: the district office in Albuquerque; three chapters of the Service Corps of Retired Executives (SCORE); six offices of WESST Corp., the New Mexico Women\u2019s Business Centers; and 19 Small Business Development Centers, some of which have branch offices.<\/p>\n