Top Small Business Grants for 2025 in New Mexico

New Mexico has over 15,000 businesses that employ 340,000 people. Of those, 99% of companies are small businesses, employing 54.2% of the workforce. These businesses contribute to the state’s critical industries, including tourism, gas and oil production, and agriculture.

Small businesses depend on access to funding to become established, maintain positive cash flow, and expand. Yet, like many other companies in the region, they face financial complexities thanks to increasing costs. Grants in New Mexico provide a critical funding solution, providing a way for small businesses to tap into the financial support they need without the requirement of repayment.

Unlike loans, which come with a hefty financial cost and the requirement for repayment, small business grants in New Mexico can be applied for without repayment concerns, making them one of the most attractive funding options for cash-strapped companies that need an infusion of capital to grow and thrive.

Small business grants provide a way for companies to meet current and future needs, fueling innovation, supporting social impact programs, and creating a solution in tough economic periods. Whether used to buy equipment or increase inventory before the busy season, these funding sources are flexible.

For a company that knows what small business grants are available, how to obtain them, and how to make the most out of them, they can be a lifeline to growing into stable, profitable organizations. Here is what you need to know about the availability of funding opportunities in New Mexico.

What are small business grants? 

A small business grant is a financial infusion of assets to a business from federal, state, local, and private organizations that the receiver does not have to repay. These are different from any other type of financing mechanism, including traditional creditor-issued loans, venture capital (VC), or other financing. The difference is – you don’t have to repay them. There is no interest in them.

Many grants have a specific purpose, such as helping a specific group of people or an industry. Some have a special purpose, such as funding women-owned or minority-owned businesses. Small businesses may use this “free money” for specific needs, such as improving their location, buying new equipment, increasing inventory, hiring employees, or meeting other specific objectives.

However, grant opportunities are not simply handed out without a bit of work. To obtain these funding opportunities, you’re business will need to apply for them, meet any criteria set by the funding organization, and then be selected to receive them.

As an early-stage company, the use of grant funding can prove vital. It allows your business to tap into the assets it needs to thrive and grow without having to take on debt to do so. If your business is looking to advance or needs a critical cash infusion, consider the various grant opportunities in New Mexico that could be available to you.

New Mexico state-specific grants for small businesses in 2025

New Mexico grant program options can help your business located in the state to obtain funding. These small business and startup grants aim to support the economic growth and development of businesses within the state. That includes opportunities for minority- and women-owned businesses (MWBEs), startups, and well-established companies.

Consider the following funding opportunities in New Mexico that could help support innovation, growth, or modernization of your New Mexico business.

Entrepreneurial and Startup-Up Grants

The Entrepreneurial and Startup-Up Grants program is a highly competitive program available for startups in the Albuquerque city limits that have 50 or fewer employees.

Eligibility and application

Businesses must be a sole proprietorship, partnership, or sole member limited liability company in the city that was established after December 31, 2010, and before July 15, 2021.

To learn more about potential further grant opportunities, visit the City of Albuquerque website.

New Mexico Science and Technology Business Startup Grant

The New Mexico Science & Technology Business Startup Grant is a state-funded grant to support businesses in the research and development of new products or technology to remain in the state to do business. The funds support headquartered companies in the technology industry with the goal of market entry, customer acquisition, job creation, and business expansion. Grants are awarded between $25,000 and $50,000.

Eligibility and application

To be eligible, a business must be one of the recognized Technology and Innovation Office (TIO) priority sectors, including Advanced Energy, Advanced Computing, Biosciences, or Aerospace. Funding may be used for a range of needs from research development to regulatory assessment and certifications.

You can learn more and apply at the Economic Development Department.

 New Mexico Economic Development Fund Grant

The New Mexico Economic Development Fund partners with El Paso Electric and the Infrastructure Investment Fund to offer this grant opportunity. Each year, it awards $1 million in investments to the economic development of organizations that are dedicated to growing businesses, increasing jobs, and supporting entrepreneurial innovation throughout the state.

Eligibility and application

The New Mexico Economic Development Fund Grant requires that all applicants demonstrate their ability to create economic growth and prosperity within Dona Ana, Luna, Otero, or Sierra counties within “economically based industries and jobs.” The expectation is job growth of 10 or more positions within 12 to 18 months.

You can learn more about the grant and apply at the Community Foundation of Southern New Mexico.

Federal grants available to New Mexico businesses

New Mexico businesses may also apply for federal grants that are available in the state. A variety of programs exist, including the following.

Small Business Innovation Research Program (SBIR)

This program aims to support research and development programs for small businesses with the potential for commercialization. It supports the healthcare, energy, and defense industries with a focus on technology. The program funds, on average, 4,000 companies each year, investing over $4 billion with no equity or IP ownership in any company.

Eligibility and application

To qualify, a business must have a proof of concept, technology development, or commercialization-phase company (awards are based on the phase the company is in). You can learn more about specific qualifications at the SBIR program website.

Small Business Administration (SBA) Grants

The U.S. Small Business Administration supports companies in New Mexico with loan programs, but also offers potential grant opportunities. Grant opportunities differ from year to year and in each region.

District-specific awards include:

• Entrepreneurial Success Award
• Family-Owned Small Business of the Year
• Veteran-Owned Small Business of the Year
• Women-Owned Small Business of the Year
• Financial Services Champion of the Year
• Women Small Business Champion of the Year
• Veteran Small Business Champion of the Year
• Small Business Manufacturer of the Year
• Rural Small Business of the Year
• Blue-Collar Small Business of the Year

Eligibility and application

Eligibility is based specifically on the type of business and program you select. To apply, contact the Albuquerque office, which covers all 33 counties in the state.

New Mexico SBIR Matching Grant

The New Mexico Small Business Innovation Research (SBIR) Matching Grant provides support to businesses that supports research and development activities. It helps small businesses to commercialize technology they are developing with access to federal SBIR funding. The funding covers proof of concept and R&D funding. It is a state-level matching program.

Eligibility and application

All New Mexico-based for-profit companies with an active Phase 1 or Phase II SBIR/STTR within three months of Phase 1 are eligible to apply. The grant selection priorities companies in the aerospace, biosciences, advanced computing, water technologies, and advanced energy sectors.

You can learn more and apply during the select application window each year through the Economic Development Department.

Corporate and private foundation grants

Many private companies offer grant opportunities for companies operating within New Mexico. Each sets their own stipulations and goals, as well as eligibility factors. The following are some of the options available in small business grants in New Mexico from corporate and private foundations. Private and corporate foundation grants may not be available year after year. Some may be a one-time opportunity. Others return each year.

AT&T Small Business Contest

Small businesses in New Mexico can apply to win $50,000, a year of AT&T services with a new device, and the opportunity to share their business with the #She’s Connected program.

Eligibility and application

The contest is open to small businesses with under 50 full or part-time employees in the U.S. Employees and immediate family members cannot be affiliated with the company.

Apply online through the AT&T website.

Rainforest Accelerator

The Rainforest Accelerator program supports entrepreneurial researchers from the University of New Mexico to explore the viability of their technology, create start-up businesses, generate business models, and submit proposals for funding opportunities. There are two cohorts each year with a maximum of 10 teams, who will receive $3,000 in funding to develop an idea and complete the program.

Eligibility and application

To qualify, applicants must be a faculty, staff, student, post-doc, or other member of the University of New Mexico, have disclosed the underlying technology in your application, and submit a comprehensive application.

You can apply online at the University of New Mexico website.

FedEx Small Business Grant Contest

The FedEx Small Business Grant Contest awarded nine grants valued at $20,000 each and a larger, $50,000 price to support a small business. The grant offers a cash award and FedEx services.

Eligibility and application

To be eligible, applicants must be a for-profit company in New Mexico with under 99 employees. You also need to have a FedEx business shipping account and use FedEx for shipping.

You can sign up at the FedEx website to learn more about potential 2025 and later grants.

Visa Everywhere Initiative

The Visa Everywhere Initiative provides both funding and networking support for startups and FinTech companies. It aims to specifically address payment and commerce challenges companies face.

Eligibility and application

To be eligible, you must be a technology startup with a focus on innovative payment or commerce solutions, be an early-stage or growth-stage company with a product or service that’s established, and your product must align with digital payments, cross-border payments, B2B payments, or other FinTech-specific solutions.

You can learn more about it on the Visa Everywhere Initiative website.

New Mexico small business grant tips and best practices

As your business grows or starts to form, having access to capital without a heavy price tag can prove vital. Before you apply for any available grant, focus on the following:

• Do your homework. Learn what grants are available for your specific business industry, location, and goals.
• Do not wait. Many applications have a set date to close, but they may close early if they receive enough applications.
• Always follow the guidelines. You cannot even be considered if you do not meet the very basic guidelines.

Conclusion

New Mexico grant opportunities range widely and change each year. However, standing out really does make a difference. For that reason, it is worth exploring a free grant writing course or taking the time to learn more about perfecting your application. And if you’re still in the early stages, be sure to research how to start a business in New Mexico so you’re fully prepared to take advantage of the funding opportunities available.