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New Mexico Small Business Loans

Small businesses play a crucial role in New Mexico’s economy, and multiple state lenders and grant programs make the state an excellent place for entrepreneurs to grow their companies. In 2018, New Mexico lending institutions have issued 29,982 loans below $100,000, with an impressive total value...

New Mexico
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist

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Whether your small business in New Mexico is a startup, a new acquisition, or just needs a cash injection, there are funding options to cover all situations. Read on to learn how to get the right financing for your business.

According to the latest Small Business Administration (SBA) figures, there are 156,996 small businesses in New Mexico. Small businesses are the lifeblood of New Mexico’s economy and are essential to the well-being of local communities. According to the SBA, small businesses account for around 99% of all businesses in the state. We’re going to look at some of the top New Mexico small business loans and show you how to get a small business loan in New Mexico.

Top Five New Mexico Small Business Loan Options

Whether you require a loan to start your small business or you wish to expand an existing one, there are several New Mexico-based traditional lenders to choose from. Below, we have included the top local funding options that offer New Mexico small business loans.

Bank of the West

Bank of the West is a subsidiary of BNP Paribas and has 23 branches across New Mexico.

According to SBA statistics, in 2020, the bank approved $14,016,300 worth of SBA 7(a) loans in New Mexico – the highest amount of the 53 SBA-approved lenders in the state. Its average term was 10 years, with a 5% average initial interest rate.

For small business loans, Bank of the West offers loans from $10,000 to $1 million. The maximum loan term is 10 years, and there are variable and fixed interest rate options.

This bank only offers secured business loans.

New Mexico Bank & Trust

New Mexico Bank & Trust is a local partner aiming to support state-based entrepreneurs and small business owners with intelligent financial products. Whether you need new equipment, more office space, or a simple line of credit, New Mexico Bank & Trust has something for any type of business.

As a SBA lender, the bank offers government-guaranteed SBA 504 and SBA 7(a) loans. Loan amounts can vary significantly, and possible fund uses can include franchise financing, business acquisition, expansion, construction, or real estate acquisition. Eligible fund uses also include machinery and equipment purchase or business restructuring. While SBA loans have rates and fees comparable to other types of loans, they come with lower down payments and, in some cases, without collateral.

Other types of small business loans offered by New Mexico Bank & Trust include:

  • Letters of credit
  • Lines of credit
  • Leasing solutions
  • Term loans

First New Mexico Bank

Founded in 1962, First New Mexico Bank is a state-chartered bank offering both personal and business financial services. With their competitive term loans and flexible lines of credit, you can be sure to receive just the right type of financing to meet your business needs.

Some of the loan products offered by First New Mexico Bank include:

  • Commercial loans. These include letters and lines of credit, land loans, and equipment or inventory financing.
  • Commercial real estate loans. Real estate loans are available for the refinance or purchase of commercial property. Amortization is up to 25 years.
  • Interim construction loans. These types of loans can be used to make a smooth transition to permanent commercial construction financing.
  • SBA loans. SBA loans are available to help you purchase or construct a new business facility.
  • Agricultural/FSA loans. The bank also offers flexible loans for agricultural businesses.

Wells Fargo

Wells Fargo is, perhaps, one of the best-known names on our list and has 65 branches across New Mexico.

Their average initial rate for SBA 7(a) loans was substantially above that of the state average in 2020, at 8.5%. The average repayment term of 12 years was roughly in line with the average across all New Mexico SBA lenders.

This lender is, possibly, better suited to newer businesses, because they offer unsecured loans of up to $100,000, with repayment periods of up to 6 years. Interest rates are fixed, so it’s easier to manage your repayments.

Pinnacle Bank

Pinnacle Bank offers a broad range of smart financing products for both new and existing small businesses in the state of New Mexico. Some of the offered products include:

  • Real estate financing. Whether you are buying a new commercial property or expanding your current location, Pinnacle Bank offers long-term real estate financing options.
  • Equipment financing. Short-term equipment financing loans are ideal for large or small equipment investments.
  • Business lines of credit. Revolving lines of credit allow business owners to have instant access to cash for ever-changing business needs.
  • Letters of credit. The bank also provides letters of credit to help business owners with negotiation of business deals.

Summary Table



LenderMinimum Loan AmountMaximum Loan AmountMaximum Repayment Period
Bank of the West$10,000$1m10 yearsSecured. Fixed/variable interest
New Mexico Bank & Trust
Not specifiedNot specifiedNot specifiedSBA 504 and 7(a) loans available - secured & unsecured.
Business term loans, lines of credit, and letters of credit available.
First New Mexico FundNot specifiedNot specified25 years for commercial real estate loansCommercial, real estate loans, interim construction loans, SBA loans, and agricultural/FSA loans are available.
Wells Fargo$10,000
$100,0006 yearsUnsecured, fixed interest
PinnacleNot specifiedNot specified
Short- and long-termReal estate and equipment financing available.

Top Online New Mexico Small Business Loan Options

Sometimes, it can be difficult to qualify for a loan with a traditional lender, as their criteria are usually extremely rigorous. In this case, it is worth considering online lenders that have far more flexible borrowing criteria and usually transfer funds to your company astonishingly quickly once approved.


Here are some of our recommended online lenders that are worth considering.

1. Fundbox

banner Fundbox

Operating since 2013, Funbox has earned a reputation as a trusted online lender offering quick business lines of credits and term loans. The lender is known for its incredibly fast automated application and approval process and convenient automatic payments once the loan is issued.

Automated application and payments
Fast approval and fund disbursement
Relatively low minimum credit score
No fees apart from interest rate
No monthly limits
Loan limits are lower than with competitors
Interest rates are relatively high

Both Fundbox lines of credit and business term loans can range anywhere from $1,000 to $150,000 in value, which is lower than some of the similar products on the market. Lines of credit must be repaid over 12 to 24 weeks, while business term loans come with either 24- or 52-week terms. The line of credit APR can reach 20%, while the term loan APR can reach 18%.

The Bottom Line

If you are looking for a large New Mexico small business loan, Fundbox might not be the right option. However, if a loan under $150,000 will meet your business needs, you can benefit from a fast automated application and quick turnaround offered by Fundbox.

2. Fundera

banner Fundera

Fundera is an online lender and a loan marketplace at the same time. This means that the platform will connect you to multiple lenders and their loan options, including microloans, term loans, merchant cash advances, business lines of credit, SBA loans, and more. To help you find the best solution and ease you through the application process, you will get a dedicated loan advisor.

Connections to multiple lenders and loans
Attractive interest rates starting at 6%
Soft credit check during the application
Funding can take up to 3 weeks
Qualification requirements are unclear

Loan features can vary significantly depending on the specific lender you are connected with. The platform will match you with the most attractive loan option, which means you can enjoy competitive interest rates starting at only 6%.

SBA loans offer the highest loan amounts, reaching $2 million, with a repayment term of up to 30 years.

The Bottom Line

With Fundera, it is easy to shop around for the best lender and the most competitive loan options. From business lines of credit and term loans, to equipment financing and merchant cash advances, Fundera offers a variety of products to meet any small business needs.

3. Credibly

banner Credibly

For over 10 years, Credibly has been offering a variety of quick and affordable small business loans in New Mexico and beyond. As such, small business owners can choose between business lines of credit and merchant cash advances, working capital and long-term business expansion loans, equipment financing and invoice factoring loans. Credibly also offers government-backed SBA loans, which are known for their favorable terms and rates.

Low minimum credit score
High borrowing limits
Multiple loan options to choose from
Easy and fast online application process
Open to high-risk industries
Helpful customer service
Interest rates can get high
Loans come with origination fees
Daily or weekly repayment terms

Credibly aims to make their financing available to a broad customer base from a variety of industries. The lender isn’t overly strict with eligibility criteria: for most loan options, you need a minimum credit score of only 500.

The loan amounts, fees, and possible terms can vary depending on the type of loan you choose to apply for. For example, the popular working capital loans range up to $400,00 in value, with a repayment term between 6 and 18 months. On the other hand, long-term business expansion loans can reach $5,000,000 in value and must be repaid over 3 to 10 years.

The Bottom Line

Without a doubt, Credibly is an excellent online lender to consider when searching for a New Mexico small business loan. With the lender’s quick online application process and applicant-friendly eligibility criteria, you will be able to receive the necessary business funding in a timely manner.

Additional New Mexico Small Business Financial Resources

In addition to funding available from traditional lenders, the state government and external organizations are operating a wide range of financial support programs for businesses. The main ways that it is helping New Mexico businesses are:

Small Business Recovery Loan Fund

The Small Business Recovery Loan Fund is being used to provide loans directly to New Mexico small businesses and nonprofits that have suffered during the pandemic. As such, eligible small businesses may qualify for a loan of up to $150,000 at a very attractive interest rate.

The rate is calculated as half the prime rate and is fixed for the ten-year loan term. The loan can be repaid at any time, with no prepayment charges or penalties. Small businesses that have received the Small Business Recovery Loan in 2020 can now refinance for a longer term and a larger amount.


DreamSpring is a state-registered small loan company that has a variety of financial programs for small businesses, with the emphasis on those that generally find it extremely difficult, or impossible, to obtain funding from traditional sources. Since 1994, DreamSpring has provided nearly half a billion dollars in loans, with the average loan size of $10,000.

Small business loans are available to both start-ups and established businesses and can range from $1,000 to $2,000,000, with affordable fixed interest rates. All types of small businesses are welcome to apply, from artisans and restaurants financing their equipment to mechanics and manufacturers.


LiftFund is a private, nonprofit organization that is firmly community-focused. It provides a range of services to small business owners, and its activities include consultation, training, and workshops. It also guides business owners toward federal and state resources as appropriate.

Among other services, LiftFund offers the following small business funding options:

  • Start-up loans
  • Small business loans of up to $250,000
  • SBA 7(a) Community Advantage loans

The Loan Fund

The Loan Fund is a community development financial institution (CDFI) that offers training and business consulting services, as well as small business loans, to business owners, entrepreneurs, and non-profit organizations in the state of New Mexico. These New Mexico small business loans can range between $5,000 and $1 million and require collateral to secure the loan.

The Loan Fund mainly provides support to:

  • Minority-owned business
  • Low- to moderate-income entrepreneurs
  • Women-owned businesses
  • Native American enterprises
  • Rural enterprises

Other Resources for New Mexico Small Businesses

Aside from the financial assistance programs, various organizations throughout the state of New Mexico provide additional support and resources to local entrepreneurs.

Santa Fe & Northern New Mexico SCORE and Albuquerque SCORE

The large network of volunteer small business mentors from SCORE provide guidance and support to entrepreneurs throughout the country.

Consider joining SCORE’s Santa Fe or Albuquerque local chapters to benefit from in-person workshops and webinars, as well as one-on-one business mentoring. SCORE also has a large, free library full of local business templates, blogs, guides, and other helpful tools.

New Mexico Small Business Development Center (NM SBDC)

NM SBDC is another valuable resource to explore if you are looking for small business counseling. Their no-cost counseling services and small business training can help both beginner and experienced small business owners.

NM SBDC also provides access to live workshops with step-by-step instruction on state and federal grant programs.

New Mexico Procurement Technical Assistance Center (NM PTAC)

The Procurement Technical Assistance Center is a government-funded program that supports small businesses looking to sell their services or products to education institutions, tribal entities, or the government.

The Center’s staff and advisors have expertise in government contracting and provide a variety of services, such as training and individual counseling to help businesses successfully compete for government contracts.

New Mexico Veterans Business Outreach Center (VBOC)

New Mexico Veterans Business Outreach Center provides training, advertisement, and outreach support for local veterans pursuing a small business career. The organization provides one-on-one counseling to assist veterans in starting or growing their small businesses. It also serves as an important liaison to other relevant resources related to financing, franchising opportunities, and more.

How to Prepare for a New Mexico Small Business Loan

While each lender has its own lending criteria, there’s certain information that is required as standard, whoever you’re applying to for a loan.

Here are some of the small business loan requirements in New Mexico that you’ll need to have ready before applying.

Credit Score

If you have a new business, it probably won’t have built up much of a credit score yet, so there’s likely to be more emphasis on your personal credit history. If you have any outstanding issues that could adversely affect your loan application, resolve them, and obtain proof of the fact.

If your business is already up and running, it can be an excellent strategy to take a relatively small loan and pay it off promptly to start building a positive credit score.

Even though they’re not obliged to, some online lenders will report your positive record with them to various credit bureaus, which help you build a positive score.

Business Plan

Have your business plan ready. You’ll need to prove to a potential lender that you’ve planned well and that you’ll be running your business in an organized manner. The lender needs to be confident that you’ll be able to make your loan repayments.

Business Information

Have information, including profit and loss reports, credit reports, balance sheets, and IRS returns, ready for inspection by the lender.


Be prepared to discuss with the lender what company assets could be used as collateral if necessary.

The Bottom Line

Without a doubt, there are a variety of funding options to choose from when it comes to obtaining a small business loan in New Mexico.

Without a doubt, there are a variety of funding options to choose from when it comes to obtaining a small business loan in New Mexico.

By contrast, online lenders are usually willing to take on more risk, and they can issue the funds for your New Mexico business exceptionally quickly. They tend to be more expensive in the long run, but, if it means you can launch or expand your business as you need to, that route can be a superb option.

Tetiana Sitiugina-Babiuk

Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

More about me

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