NMSBIC Debt and Equity Investment Programs

NMSBIC investment capital is delivered to New Mexico businesses through cooperative agreements between NMSBIC and organizations that have demonstrated the capability to provide business assistance to new and expanding businesses and that are primarily engaged in the business of providing business services and debt or equity capital to new and expanding businesses. Each organization with whom NMSBIC enters into a cooperative agreement has its own investment criteria, application process, and distribution system. Entrepreneurs and business owners seeking funding should visit FinanceNewMexico.org.

Lending Program

Currently, NMSBIC has entered into cooperative agreements with nine nonprofit organizations that typically serve under-served small businesses, often providing capital to those that have been unable to obtain a loan from their community bank. These organizations typically also assist clients with other resources, such as mentoring, technical assistance, and business-related workshops. Because the money from repaid loans is made available to be re-lent, the lending program has resulted in more than $188 million in loans.

Lending Organization		Businesses Served
		Funding has been provided for the New Mexico Mortgage Finance Authority’s (MFA) Primero loan program, which provides funding for the development of multifamily housing in areas of the state where lack of affordable housing restricts job growth.
		Clearinghouse CDFI finances direct loans for affordable housing, community facilities, small businesses, and commercial real estate. Loan types include construction, acquisition, renovation, expansion, and refinance.
		DreamSpring, formerly known as ACCION, serves small and medium-sized businesses, many of which are minority-owned startups and unable to obtain loans from traditional lending sources.
		Homewise is a nonprofit organization known for creating successful homeowners. Under the NMSBIC lending program, Homewise offers commercial mortgages for owner-occupant businesses and nonprofits that wish to purchase a building.
		LiftFund has provided responsible capital and business education to small business owners and aspiring entrepreneurs since 1994. LiftFund offers SBA 7A Community Advantage lending options, SBA Microloans, and SBA 504 loans.
		RCAC provides training, technical and financial resources, and advocacy to help rural businesses achieve their goals. RCAC enables businesses to retain or create jobs that improve the economic condition of rural communities.
		The Loan Fund clients are typically businesses with a larger number of employees. The Loan Fund, itself a nonprofit organization, also serves nonprofits.
		Ventana Fund is a nonprofit organization dedicated to financing the creation and preservation of affordable multi-family housing by providing low-interest loans for developers who serve New Mexico’s low-income residents and high-need communities.
		The NMSBIC portfolio committed to WESST is primarily aimed at creatives and art-related businesses. This business sector has historically been underserved.

Equity Program

Before 2003, there were no equity funds headquartered in New Mexico. NMSBIC helped create nine New Mexico-based equity funds that have attracted, from other sources, nearly three times the amount of NMSBIC’s commitment. The funds target New Mexico businesses in every stage of development, from seed and early stages to growth and maturity stages.

In 2008, NMSBIC began to change its focus by putting a greater emphasis on its lending program. Please see the current statutory report for more information about NMSBIC equity investments.