SANTA FE, New Mexico – The U.S. Small Business Administration (SBA) has amended its major disaster declaration for the State of New Mexico (FEMA-4886-DR), initially issued on July 22, 2025, to now include Doña Ana County among the areas eligible for both Physical Damage and Economic Injury Disaster Loans (EIDLs). This amendment, announced on August 16, 2025, addresses the severe storms, flooding, and landslides that began on June 23, 2025, and are ongoing, causing significant damage across parts of the state.

Incident Details and Impact

The disaster declaration follows a series of devastating weather events that have impacted New Mexico, particularly in Doña Ana County, where monsoon rains on July 22, 2025, caused significant flooding in areas like Vado, affecting at least 110 homes and damaging critical infrastructure. The flooding, exacerbated by runoff from burn scars and heavy rainfall, has led to widespread property damage and economic disruption, prompting federal assistance to aid recovery efforts.

The amendment extends eligibility for SBA disaster loans to residents, businesses, and nonprofit organizations in Doña Ana County, alongside previously designated areas like Lincoln County. Additionally, the contiguous county of Luna is now eligible for Economic Injury Disaster Loans.

SBA Disaster Loan Assistance

The SBA’s disaster loan program provides low-interest, long-term loans to help homeowners, renters, businesses, and nonprofits recover from the physical and economic impacts of the disaster. Key details include:

• Physical Damage Loans: Homeowners can apply for up to $500,000 to repair or rebuild their primary residence. Both homeowners and renters are eligible for up to $100,000 to replace personal property, including vehicles damaged or destroyed in the storms. Businesses and nonprofits may borrow up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets.
• Economic Injury Disaster Loans (EIDLs): Available to small businesses, small agricultural cooperatives, and nonprofits, EIDLs provide up to $2 million to cover working capital needs such as payroll, fixed debts, and accounts payable impacted by the disaster, even if no physical damage occurred.
• Mitigation Funds: Applicants may qualify for a loan increase of up to 20% of their verified physical damage to implement mitigation measures, such as insulating pipes, weather-stripping doors, or installing storm windows to protect against future disasters.
• Interest Rates and Terms: Interest rates are as low as 2.813% for homeowners and renters, 4% for businesses, and 3.625% for nonprofits, with terms up to 30 years. No interest accrues, and payments are deferred for the first 12 months after loan disbursement.

Application Process and Deadlines

Residents, businesses, and nonprofits in Doña Ana County and other eligible areas can apply for SBA disaster loans through the following methods:

• Online: Visit the MySBA Loan Portal at https://lending.sba.gov.
• In-Person: SBA representatives are available at Disaster Loan Outreach Centers, such as the one located at Eastern New Mexico University – Ruidoso (709 Mechem Dr., Ruidoso, NM), open Monday through Friday from 9 a.m. to 6 p.m. and Saturday from 9 a.m. to 1 p.m. Walk-ins are welcome, and appointments can be scheduled at appointment.sba.gov.
• By Phone or Email: Contact the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for assistance. Telecommunications relay services are available at 7-1-1.

Deadlines:

• Physical Damage Loans: Applications must be submitted by September 22, 2025.
• Economic Injury Disaster Loans: Applications are due by April 22, 2026.

Applicants are encouraged to apply promptly and retain receipts for disaster-related expenses. Those with insurance should file claims first, as SBA loans cannot duplicate benefits covered by insurance. However, SBA assistance may cover uninsured losses, deductibles, or mitigation improvements.

Broader Federal and State Support

In addition to SBA loans, the Federal Emergency Management Agency (FEMA) has made Individual Assistance available to homeowners and renters in Doña Ana and Lincoln counties for needs such as temporary housing, home repairs, and personal property losses. FEMA’s Public Assistance program has also been extended to Doña Ana, Otero, and Lincoln counties, as well as the Mescalero Apache Tribe, to support infrastructure repairs and emergency services. Residents can apply for FEMA assistance online at DisasterAssistance.gov or by calling (800) 621-3362.

The New Mexico Department of Workforce Solutions has also announced that Doña Ana County residents may be eligible for Disaster Unemployment Assistance (DUA) if their employment or self-employment was disrupted due to the storms. Applications for DUA require first applying for standard unemployment insurance, with a deadline of 21 days to submit proof of employment or self-employment.

Ongoing Recovery Efforts

The federal disaster declaration, updated on August 16, 2025, reflects the severity of the storms and flooding, with initial damage estimates in Doña Ana and Lincoln counties reaching tens of millions of dollars. FEMA has already allocated $2.7 million for flood-related damages in New Mexico, including $1.6 million for housing assistance, with 235 requests for individual assistance approved statewide as of mid-August.

Local officials in Doña Ana County have emphasized the need for federal funds to rebuild critical infrastructure, such as bridges, sewer systems, and water services. The SBA’s Business Recovery Centers and FEMA’s Disaster Recovery Centers continue to provide on-the-ground support to streamline applications and assist affected communities.

Contact Information

For more information on SBA disaster loans, visit sba.gov/disaster or contact the SBA Customer Service Center. For FEMA assistance, visit fema.gov/disaster/4886 or call (800) 621-3362. For DUA, contact the New Mexico Department of Workforce Solutions at (877) 664-6984 or apply online.

The SBA and FEMA urge all eligible individuals, businesses, and nonprofits to take advantage of these resources to aid in the recovery and rebuilding process as New Mexico continues to address the impacts of this ongoing disaster.