WESST is one of two SBA micro-lenders in New Mexico that provide loans to small business owners who might not qualify for traditional bank loans. We offer both start-up loans for new businesses and business loans to grow an existing business. Our eligibility guidelines and other important details about our loans are outlined below.
Loan Amounts, Rates, Fees and Key Terms
- Loans range from $200 to $10,000 for start-up businesses (those in operation for less than 12 months); from $200 to $50,000 for existing businesses (those in operation for more than 12 months).
- Fixed interest rates vary from 5% to 7.5%, and all approved loans carry a 1% loan fee.
- Maximum loan term for first-time borrowers is five years, with preference given to shorter-term loans.
- Loan proceeds must be specifically utilized for one or more of the following uses:
- business development and/or expansion
- to purchase inventory, materials, supplies, equipment, tools, furniture and/or fixtures
- remodeling expenses, or
- for specifically identified working capital including: rent, utility deposits, advertising, insurance, licensing, bonding, legal and accounting fees.
- Loan proceeds may not be used to refinance existing debt, or to pay personal or business taxes.
- Loan recipients must continue to work with a WESST consultant throughout the duration of the loan.
- All loan recipients must submit business financial statements (or other suitable financial records) at regular intervals, as determined by the terms of each individual loan.
- All start-up businesses must develop and submit a complete business plan as part of the loan package to demonstrate capacity for repayment.
- All loan requests must include a one-year cash flow projection.
To be eligible for a WESST loan, an applicant must:
- Be a WESST client.
- Be a resident of New Mexico, with a street address and telephone number.
- Obtain a credit report through WESST.
- Be able to present her/his loan request in person to the Loan Fund Committee.
- Pledge collateral valued at or above the amount of the loan.
Loans cannot be made for the following purposes:
- Multi-level marketing
- Inventory floor planning
- Speculative activities including real estate, lending or investments
- Sale and/or production of pornographic materials
- Sale and/or manufacture of tobacco or liquor
- Sale and or manufacture of explosives, firearms or knives
- Debt consolidation
- To pay business or personal taxes
Loans cannot be made to the following types of businesses:
- Academic institution
- Non-profit organization
Loans cannot be made to a business or business owner who has declared bankruptcy in the past 12 months.
Loans cannot be made to a felon or a parolee who has a criminal case pending against them.
Request More Information
If you are interested in applying for a small business loan from WESST, first please make sure you have closely read the above information about our eligibility guidelines and other important information about the loans we offer. If you believe you meet our eligibility requirements and the loan you are seeking fits within our guidelines, please fill out and submit a Small Business Loan Inquiry Form.
Please note that the Inquiry Form is not a loan application; by submitting the Inquiry Form you are expressing interest in submitting a loan application.