Loan Eligibility and Requirements
WESST is one of three 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 is six (6) years, with preference given to shorter-term loans.
- Loan proceeds must be specifically utilized for one or more of the following purposes:
- 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 resident of New Mexico.
- Obtain a credit report through WESST.
- 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
- Franchise not on the SBA list of approved franchises
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 business owner with outstanding judgements or liens.
Loans cannot be made to a felon or a parolee who has a criminal case pending against them.
Loans cannot be made to individuals with delinquent student loans, unpaid child support or unpaid taxes.
To start a loan inquiry process, fill out our Small Business Loan Inquiry.