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10 Best Small Business Loans in New Mexico

Key Terms

Small business loans are a common way for companies to raise funds at all stages of their establishment and growth.
Borrowers should consider their credit score along with the ability to repay these loans before choosing a loan, with careful attention paid to the actual terms and conditions.
Lenders take on risk when providing small business loans, which is why credit scores are important, and why many lenders charge an interest rate higher than other loans.

For the over two million people that live in New Mexico, it is a state with a wide range of cultural and ecological differences. The state, called The Land of Enchantment, is home to Santa Fe, which happens to be the oldest capital in the country, having been founded in 1610. The state, which is the fifth largest in terms of land size, has a moderately sized population, which makes for large, remote areas.

It’s a vibrant place to call home with a mixture of American, Spanish, and Hispanic influences, as well as the strong Native American culture that’s present here. The area is incredibly beautiful and diverse with large cities like Albuquerque and beautiful state parks, including Bluewater Lake State Park, Rio Grande Nature Center State Park, and the Aztec Ruins National Monument. That may be why many people seek out this area to live.

With that comes a lot of diversity in the economy here as well. There are large industries here, including oil and gas production, along with aerospace, healthcare, cattle ranching, lumber, and technological resource. There are also many small businesses located in the state as well. The U.S. Small Business Administration shares that there are 161,921 small businesses operating in New Mexico as of October 2022. These smaller companies produce 346,374 jobs for those who live in the state and contribute a payroll valued at $13,708,900. While there are large companies that call New Mexico home, many of the state’s population is dependent on smaller companies for their household income.

Without a doubt, then, there is a need to offer small businesses in the state capital. There are a number of ways to obtain that capital as well, including through the use of small business lenders offering competitively priced loans. The Small Business Administration’s data shows that there are 768 small business loans in place right now, according to the latest three years of data. Those loans have a total value of $503,881,802 and an average loan size of $656,096. That’s a significant amount of money available to small business owners to put back into their companies.

Show Me Lenders

How small business loans work in New Mexico

New Mexico small business owners are reliant on capital for many needs, whether that includes growing their business, expanding into new areas, hiring new employees, or spending time modernizing. That often means turning to small business lenders. There are a number of options for borrowers, including smaller credit unions, big banks, private lenders, and other specialized lenders.

A small business loan is like most other types of loans in which borrowers obtain the capital they need and agree to repay the loan over time with interest. The terms of these loans are often versatile, sometimes spanning 5 to 10 years or more. They can be used for many needs as well, including purchasing equipment, investing in new technologies, research, marketing, and much more. This type of versatility makes small business loans attractive.

There are various types of small business loans in New Mexico, including:

Bank loans
SBA loans
Business term loans
Business lines of credit
Equipment financing
Loans funds

Each loan has specific needs, and most businesses will not qualify for all of them. However, when reaching out to a lender, it is possible that the business will be able to customize a loan that fits their borrowing needs, including based on how much they wish to borrow and competitive terms that keep monthly payments affordable.

Lenders take on a significant amount of risk in these loans, which is why it is necessary to charge interest on these loans. They also do a significant amount of research to determine if lending to the company is financially feasible. This often includes looking over a variety of documents, such as balance sheets, bank statements, and profit and loss statements. In addition to this, most lenders will also use the business’s credit score or that of the business’s owner to determine the level of risk present.

As a startup company in the State of New Mexico, entrepreneurs usually self-fund their business or nonprofit. Nonprofit organizations can rely on donations or grants to get started, but those typically require a special filing status with the IRS. Other resources for New Mexico small business owners include the Small Business Recovery Loan Fund, a disaster loan for those businesses impacted by a natural disaster, grant programs, and information from the Small Business Development Center. Your eligibility for these programs depends on the loan term and other aspects about your startup business. Make sure to review all business resources before committing to a loan.

A typical New Mexico business might need loan funds to grow with economic development. Start with a business plan showing what you hope to achieve and what you’ve already achieved, and be clear about the purpose of the loan, whether it’s to buy real estate, hire new people, or to cover cash flow needs. Eligible businesses can get financial assistance from a credit union, bank, or loan fund to help them grow, and then repay that loan over time.

All lenders are different, and that means there are a lot of opportunities for businesses to find the loan that’s right for them. Yet, when you consider costs, timelines, and availability, it’s helpful to know which lenders really do stand out. Take some time to consider the options.

10 Biggest small business loan lenders in New Mexico

New Mexico small business loan lenders ranked by loans issued in the state.

Rank	Bank Name	# of New Mexico Loans	Avergage Interest Rate	Average Loan Size
1	Western Commerce Bank	36	5.09%	$554,839
2	Bank of the West	30	3.95%	$615,973
3	First Savings Bank	22	3.90%	$204,727
4	U.S. Bank	17	6.65%	$145,900
5	Live Oak Bank	12	5.35%	$1,955,833
6	Wells Fargo Bank	12	6.23%	$272,767
7	Sunflower Bank	11	4.56%	$1,227,718
8	The Bank of Clovis	11	5.84%	$563,146
9	PNC Bank	9	6.46%	$493,556
10	Bank of the Southwest	8	4.78%	$803,300

Get Small Business Loan Quotes

1. Western Commerce Bank

Started in June 1961, in Loving, New Mexico, Western Commerce Bank started as a single entity to serve the community. Now located in 6 cities throughout New Mexico, Western Commerce Bank is able to meet the needs of its customers with products for personal, business, and loans.

We reached out to Western Commerce Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.