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If you own a small business in the state of New Mexico or you’re considering starting a small company in the area, you are far from alone.
The small business arena in New Mexico is primed for growth, but there are challenges that both new and established business owners face in keeping a company moving forward.
This guide offers some direction on the types of small business financing available to business owners in New Mexico, which companies may qualify for specific financing, and when it makes the most sense to pursue one over the other.
On this page:
Small Business Loans in New Mexico
You should know that small business loans do come with more stringent qualification requirements than other business funding sources, including the need for steady revenue over a certain threshold, several years in business, and a strong financial track record of on-time payments and overall money management of business finances.
Below are a few online small business loan options for qualified companies in New Mexico:
As low as 6.00%
$5,000 – $2 million
1 – 5 years
The above information is for the Lendio Business Term Loan.
Lendio is the largest small business loan marketplace in the U.S. with a network of over 300+ lenders. These lenders include PayPal, Bank of America, American Express, and more.
You can apply with one simple application without impacting your credit. The application process can be completed online in 15 minutes with no fee or obligation. If approved, funds can be made available in as little as 24 hours.
- Short term loan
- Business term loan
- Business line of credit
- Merchant cash advance
- Business credit card
- Equipment financing
- Commercial mortgage
- Startup loan
- SBA loans
- Accounts receivable financing
- Business acquisition loan
9.77% – 35.98%
$5,000 – $500,000
6 – 60 months
The information above is for the LendingClub Business Term Loan.
LendingClub is a peer-to-peer lender that connects investors with businesses in need of financing. To be eligible, businesses must have at least $50,000 in annual sales, as well as been in business for 12 months or more.
You can apply online in under 5 minutes and receive multiple quotes. If you decide to pay off your loan early, there are no prepayment fees to worry about.
7.00% – 69.00%
$500 – $250,000
6, 12, or 18 months
The information above is for the Kabbage Business Line of Credit.
Kabbage is a small business lender offering a business line of credit. The lender has a low minimum loan amount which can make it a good option for business owners in New Mexico who need a small amount of financing.
In order to be eligible, your business needs to be at least 12 months old, with $50,000 in annual revenue.
Small Business Grants in New Mexico
Small business grants may be another viable option for companies searching for business funding. Unlike small business loans, grants do not need to be repaid. Instead, small businesses must follow the guidelines for grants they receive in terms of the work provided in return for the funding. Grants are available from several sources, including the following.
Here are some New Mexico small business grant options:
New Mexico Innovation Vouchers are available through the Office of Science and Technology of the state’s Business Development department. These small competitive grants are offers to early-stage science or technology companies to help take away some of the financial pressure of reaching their full market potential. Grants up to $2,000 are awarded to companies that qualify based on the application submitted by the small business.
New Mexico FUNDIT
Several grant opportunities exist through a collective of agencies in New Mexico to qualified small businesses under the umbrella of New Mexico FUNDIT. The collective provides financing solutions from a large pool of agencies with a single application, including some grant funding, specifically for businesses working in community development, revitalization, housing, and infrastructure. Because there are several agencies participating in the FUNDIT program, small businesses have a wide range of grant funding available, as well as widely varied application requirements.
Small Business Investors in New Mexico
Beyond small business loans and grant funding, small businesses in New Mexico may also pursue investor funding from a variety of sources. Investor funding differs from grant funding in that the amount received needs to be repaid over time. However, this repayment, unlike a small business loan, is done through giving up equity in the business.
Taking on investments from an angel, venture capitalist, or private investor may also mean giving up some management control within the business, at least for a short period of time. Investors are mostly focused on high-growth small businesses that have some aspect of technology in their products or service solutions. Here are a few investors in New Mexico able and willing to assist small businesses to receive the funding they need to grow.
Here are some New Mexico small business investment options:
As a New Mexico-based venture capital firm, Flywheel Ventures offers investor capital to early- and seed-stage small businesses in the state. The investment firm focuses on providing investor funding to entrepreneurs working in the information technology or urban systems fields, with a penchant for energy, water, infrastructure, and digital services.
The total amount of funding available varies greatly depending on the type of company, the financial need, and the resources available from the venture capitalist. Flywheel Ventures allows small businesses to submit a summary of their financing needs and product or service ideas online.
New Mexico Angels
Founded in 1999, New Mexico Angels is a group of accredited angel investors working to assist early-stage start-up small businesses throughout the state. Since its inception, the angel investor firm has funded more than $15 million in several notable small businesses.
The firm helps connect investors with business owners for the purpose of funding product development, completing prototypes, launching new products, expanding or improving management teams, or completing strategic partnerships.
Small businesses interested in funding from New Mexico Angels must be seeking between $100,000 and $500,000, have a strong business plan, and provide company valuation information along with market opportunities. All applications are submitted online.
The Verge Fund
Based in Albuquerque, The Verge Fund is a firm that brings together early-stage entrepreneurs with investors, founders, and advisors to help small businesses reach their full potential in the state. The Verge Fund leverages the $5 billion spent in research funding each year throughout New Mexico to assist small businesses in maximizing their products and services to make them marketable to a large consumer base. The investment firm focuses on seed-stage funding for high-growth small businesses. Companies interested in applying for financing with the help of the Verge Fund can contact the firm online.
Author: Melissa Horton