New Mexico SBIC
Investing in small businesses for New Mexico’s future

Economic Impact

NMSBIC FY2024 Highlights

NMSBIC FY2024 Highlights

The New Mexico Small Business Investment Corporation (NMSBIC) is a cost-effective way to provide capital to the State’s small businesses, which are a primary source of job creation. NMSBIC funds have allowed state businesses to create or retain more than 25,000 jobs since 2001.

NMSBIC loans and equity investments also benefit the state in the form of state income tax, sales tax, and gross receipts tax revenues.

Read the UNM Bureau of Business and Economic Research (BBER) report on the Economic Impacts of the NMSBIC published in March of 2017.

A Loan Program Fills a Void in Small Business Lending

NMSBIC’s greatest success has been its support of nonprofit lenders, which have played an important lending role as traditional banks have reduced lending to small businesses. NMSBIC funds committed to nonprofit lending organizations have resulted in $254 million in more than 7,200 loans to small businesses—many of which would not qualify for traditional loans—and contributed greatly to job creation and retention. Furthermore, Loan Program earned interest has exceeded loan losses, resulting in a net financial benefit to the NMSBIC in addition to the stimulative economic impact generated by the program.

Longtime Loan Program partners include The Loan Fund, DreamSpring, and WESST, while LiftFund, Homewise, RCAC, Ventana Fund,Housing New Mexico, and Clearinghouse CDFI were added in or after 2019. Nonprofit lender B:Side Fund was added in 2024, and B:Side Capital will become a partner in 2025. Lending provided by these organizations has retained housing, education, social services and other critical services in the state’s smaller communities. In addition to providing much-needed small business lending, lending partners that are nonprofits also provide small business technical assistance that may include business planning and setup of accounting systems. Loans typically range from $2,500 to $250,000 and have been made in 31 of 33 New Mexico counties.

Equity Program Changing Focus

NMSBIC helped create nine New Mexico-based equity funds that attracted nearly three times the amount of NMSBIC’s commitment from other sources. The nine funds made equity investments in 48 New Mexico companies, most of which were very early stage or early stage companies – often startups that could not attract capital from banks or larger equity funds.

In 2011, the NMSBIC board changed its investment strategy to focus on expanding the Lending Program. NMSBIC is no longer making equity investments and is working to reduce the concentration of equity investments to increase the Lending Program fund availibility.