BUSINESS FINANCING · NM

Business Financing Guide for Eddy County, New Mexico

This guide helps solo contractors, small business owners, and real-estate investors in Eddy County, New Mexico understand their local financing options. It covers who qualifies, what documents to gather, which local lenders and CDFIs actually serve this region, New Mexico state-specific rules, and what red flags to watch for. Origen Capital is a directory — we connect you to resources, but we never lend money or collect your personal information.

§ 01 — What it is

What Is Small Business Financing?

Business financing is any money you borrow or receive to start, run, or grow a business — or to purchase income-producing real estate. It comes in several forms: • **Term loans** — You borrow a fixed amount and repay it over months or years with interest. Good for equipment, vehicles, or property. • **Lines of credit** — A flexible account you draw from as needed. Good for covering slow seasons or supply costs. • **Microloans** — Small loans (often under $50,000) designed for very small businesses or startups that cannot yet qualify for a traditional bank loan. • **SBA-guaranteed loans** — The U.S. Small Business Administration does not lend money directly. Instead, it guarantees a portion of a loan made by a local bank or CDFI, which reduces the lender's risk and makes it easier for you to qualify. • **CDFI loans** — Community Development Financial Institutions are mission-driven lenders. They serve borrowers who may be overlooked by traditional banks — including newer businesses, lower-credit borrowers, and ITIN holders. • **Real estate investor financing** — Includes conventional mortgages, DSCR loans (based on rental income, not personal income), and hard-money bridge loans. In Eddy County, most small businesses are tied to the oil-and-gas service sector, agriculture, or local retail and construction. Lenders here understand that income can be seasonal or contract-based, so do not assume you will not qualify just because your income looks irregular on paper.

§ 02 — Who qualifies

Who Qualifies in Eddy County?

Eddy County's economy is anchored by the Permian Basin oil and gas industry, farming and ranching, and a growing small-business corridor in Carlsbad and Artesia. Lenders who work here are familiar with all of these income types. **You may qualify even if:** • You are a sole proprietor or independent contractor (oilfield services, construction, trucking, landscaping) • Your income comes from a mix of 1099s and small contracts • You have been in business for less than two years • You do not have a Social Security Number but do have an ITIN (Individual Taxpayer Identification Number) • Your credit score is below 680 — CDFI and microloan programs often have more flexible standards • You are a first-time borrower with no established business credit **Typical qualifying factors lenders look at:** • Time in business (6 months to 2 years minimum, depending on program) • Annual revenue or gross receipts • Ability to repay (your income vs. monthly debt payments) • Purpose of the loan — lenders want to know the money has a clear use • Collateral — for larger loans, a vehicle, equipment, or property may be required **Real-estate investors:** If you own or want to purchase rental property in Eddy County, DSCR (Debt Service Coverage Ratio) loans look at the rental income of the property rather than your personal tax returns. This is useful for contractors or self-employed borrowers whose tax returns show low net income after deductions.

§ 03 — What you need

Documents You Will Typically Need

Gathering your paperwork before you approach a lender saves time and signals that you are organized. Requirements vary by lender and loan type, but here is a solid starting list: **For most small business loans:** • Government-issued photo ID (driver's license, passport, or consular ID) • ITIN or Social Security Number • Last 2 years of personal tax returns (or 1 year for some microloan programs) • Last 2 years of business tax returns (if the business has been open that long) • Last 3–6 months of business bank statements • Profit-and-loss statement (your lender or a local SBDC advisor can help you prepare one) • Business plan or one-page summary of how you will use the loan and how you will repay it • Proof of business registration with the New Mexico Secretary of State • Any existing business licenses or contractor licenses **For ITIN borrowers specifically:** • ITIN letter from the IRS • Two or more years of ITIN-filed tax returns • Proof of address (utility bill, lease agreement) • Additional bank history may be requested **For real estate investors:** • Property address and purchase contract or current mortgage statement • Rent rolls or lease agreements (for existing rentals) • Property appraisal (lender typically orders this) • Proof of insurance **Tip:** The New Mexico Small Business Development Center (SBDC) at New Mexico State University has a location that serves southeastern New Mexico and can help you prepare all of these documents at no cost.

§ 04 — Where to start in Eddy County

Local Lenders, CDFIs, and Resources That Serve Eddy County

These are organizations with a track record of serving small businesses and investors in or near Eddy County, New Mexico. Origen Capital is a directory — always verify current programs and contact details directly with each organization. --- **Accion Opportunity Fund** A national CDFI that actively lends to small businesses in New Mexico, including ITIN holders and sole proprietors. Offers microloans from $300 to $250,000. They have Spanish-speaking loan advisors and flexible credit standards. Start at accionopportunityfund.org. **Prestamos CDFI** A CDFI headquartered in Arizona that serves New Mexico businesses, including those in southeastern NM. Focuses on Hispanic entrepreneurs, ITIN borrowers, and startup businesses. Offers both business loans and technical assistance. **New Mexico Community Capital (NMCC)** A Santa Fe-based CDFI that provides small business loans across New Mexico with a mission to serve underbanked entrepreneurs. Loan officers can work remotely with Eddy County applicants. **First National Bank of Artesia** A locally rooted community bank headquartered in Artesia, Eddy County. Offers SBA 7(a) and conventional small business loans. Has deep familiarity with the oilfield services economy and agricultural businesses in the region. A strong first call for established businesses. **Western Commerce Bank (Carlsbad Branch)** A New Mexico community bank with a branch in Carlsbad. Offers commercial loans, real estate financing, and business lines of credit. Familiar with the Permian Basin contractor market. **Guadalupe Credit Union** A New Mexico credit union that serves members across the state. Credit unions are member-owned and often offer lower rates than commercial banks. Some New Mexico credit unions accept ITIN for membership — call ahead to confirm current policy. **Lea-Eddy Electric Cooperative and Agricultural Lenders** For ranchers and farm operations, Farm Service Agency (FSA) loans and agricultural lenders serve Eddy County. The FSA office in Carlsbad can provide direct and guaranteed farm loans for agricultural real estate and operating expenses. **SBA New Mexico District Office (Albuquerque)** The SBA's New Mexico District Office covers all of Eddy County. They do not lend directly, but they can connect you to SBA-approved lenders, free counseling, and programs like: - SBA 7(a) loans (up to $5 million, general business purposes) - SBA 504 loans (real estate and equipment, long-term fixed rates) - SBA Microloan Program (up to $50,000 through nonprofit intermediaries) Reach them at sba.gov/offices/district/nm/albuquerque. **NMSU Small Business Development Center — Southeast Region** Free one-on-one business advising, loan packaging help, and financial statement preparation. Serves Eddy County businesses. No cost, no obligation. Contact the NMSU SBDC network at nmsbdc.org.

§ 05 — What to avoid

New Mexico State-Specific Regulatory Notes

Understanding New Mexico's rules helps you avoid surprises and take advantage of programs built specifically for your state. **Business Registration** All businesses operating in New Mexico must register with the New Mexico Secretary of State (sos.nm.gov) and obtain a New Mexico Tax Identification Number from the New Mexico Taxation and Revenue Department (TRD). This is separate from your federal EIN. Lenders will often ask for both. **Gross Receipts Tax (GRT)** New Mexico does not have a traditional sales tax. Instead, it uses a Gross Receipts Tax paid by businesses on their receipts from sales of goods and services. When lenders review your revenue, they will look at your GRT filings as evidence of business activity. Keep your GRT filings current — they function like a financial record for your business. **New Mexico Economic Development Department (EDD)** The EDD administers several small business support programs, including the New Mexico Finance Authority (NMFA), which provides low-interest loan programs for small businesses and rural communities. Eddy County businesses may qualify for rural business financing through NMFA. Visit nmfinance.com for current programs. **Contractor Licensing** If you do construction, electrical, plumbing, or HVAC work in New Mexico, you must be licensed by the New Mexico Regulation and Licensing Department (RLD). Lenders providing loans to contractors will ask to see your license. An expired or unlicensed contractor status can disqualify a loan application. **ITIN and New Mexico Taxes** New Mexico accepts ITIN for state income tax filing. If you file New Mexico state taxes with an ITIN, your state return can serve as supporting income documentation for CDFI and microloan applications. **Local Incentives in Eddy County** The City of Carlsbad and Eddy County have periodically offered economic development incentives for businesses creating local jobs. Contact the Carlsbad Department of Development (carlsbadnm.com) to ask about current programs — these change year to year.

§ 06 — Ask a question

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