NMSBIC Returns $3 Million to Severance Tax Permanent Fund
The New Mexico Small Business Investment Corporation returned more than $3 million in net excess funds to New Mexico’s Severance Tax Permanent Fund on October 21, 2024.
NMSBIC, a nonprofit corporation, was created in 2001 by state legislation. The profits it earns are returned at the end of each fiscal year to the state fund from which the money originated.
Joshua Smith
Joshua Smith, NMSBIC president and board chair, said, “This return paid to the State of New Mexico reflects NMSBIC’s strategy of making sound investments in growing businesses throughout the state.”
According to Russ Cummins, NMSBIC’s executive director and investment advisor, NMSBIC acts as a virtual company with no office and no employees. It leverages existing community resources, including Community Development Financial Institutions (CDFIs), to deliver funds and technical assistance to small businesses.
“NMSBIC’s efficient structure makes paying this kind of return possible,” said Cummins.
Formed in 2021 and funded by an allocation from the Severance Tax Permanent Fund, the capital entrusted to NMSBIC aims to enhance the economic development objectives of the state, create job opportunities, and support small businesses in communities statewide. At the end of the 2024 fiscal year, NMSBIC’s outstanding loans reached $100 million, the highest point since its founding.
Since 2001, NMSBIC funds committed to nonprofit lending organizations have resulted in $254 million in more than 7,200 loans to small businesses that supported more than 25,000 jobs in 31 of New Mexico’s 33 counties. Many of these businesses did not qualify for traditional loans.
NMSBIC’s lending partners include The Loan Fund, DreamSpring, Homewise, LiftFund, RCAC, Ventana Fund, Clearinghouse CDFI, Housing New Mexico, and WESST. Each lending partner organization has its own investment criteria, application process, and distribution system. Entrepreneurs and business owners seeking funding should visit FinanceNewMexico.org.