Financial Assistance
Financial Assistance Programs by Provider
New Mexico Finance Authority (NMFA)
New Market Tax Credits
New Market Tax Credits are designed to help low income communities develop business that provide economic development and jobs, including tribal areas with high levels of unemployment and poverty. The credit is taken over a 7 year period, 5% in each of the first 3 years and 6% in each of the final 4 years for a total of 39% of the original investment amount. NMFA has received an allocation of $110 million and eligible activities may include:
- Loans or investments located in low-income census tracts;
- Development of commercial, industrial and retail real estate projects (including community facilities) in low income census tracts;
- Development of for-sale housing in low-income census tracts.
Public Project Revolving Fund (PPRF)
The NMFA’s flagship program is a unique revolving loan fund known as the Public Project Revolving Fund (PPRF). The PPRF funds infrastructure and capital equipment projects with low-cost and low-interest rate loans. The key characteristics of the PPRF is that all participating borrowers, regardless of their creditworthiness, receive ‘AAA’ insured interest rates; among the lowest interest rates available in the market.
Local Government Planning Fund (LGPF)
The LGPRF provides up-front capital that can be used for water and wastewater projects, long-term master plans, conservation plans and economic development plans. The planning money comes in the form of a loan which may be forgiven when the final project is financed through NMFA.
Statewide Economic Development Program (SWEDFA)
The NMFA with the New Mexico Economic Development Department (NMEDD) are partners in this lending program for private businesses and non-profit companies. SWEDFA offers a variety of financing strategies to help fund small business including bank participations, direct loans, loan guarantees and taxable and tax-exempt bonds.
Smart Money Loan Participation Program
SMART Money is a program of SWEDFA. It provides bank participation loans, direct loans and loan guarantees to New Mexico businesses. The SMART Money loan participation is designed to lower the cost for the borrower and share the risk with the bank creating a benefit to both the bank and borrower. The borrower receives a fixed interest rate typically 300-400 basis points below the bank’s rate on the NMFA’s portion of the loan because the NMFA’s “Base Rate” is based on treasury instruments of like maturity and adjusted upward for risk. The NMFA does not charge fees to either the borrower or bank, and allows the bank to keep a portion of its interest rate to service the loan.
For more information: www.nmfa.net
Contact: Santa Fe: 505.984.1454 or 1.877.ASK.NMFA
MICRO-LENDERS
ACCION New Mexico
ACCION offers loans and support to self-employed individuals who have limited or no access to traditional business credit. Loan amounts range from $200 to $150,000.
For more information: www.accionnewmexico.org
Contact: Albuquerque: 505.243.8844 or 1.800.508.7624
Enchantment Land Certified Development Company (ELCDC)
ELCDC is a non-profit organization licensed by the Small Business Administration to administer the SBA 504 Loan Program. SBA 504 provides expanding small businesses with 90 percent financing to buy commercial real estate; make leasehold improvements; buy and install machinery, equipment and fixtures; and pay soft costs associated with the project.
For more information: www.elcdc.com
Contact: Albuquerque: 505.843.9232 or 1.888.282.9232
The Loan Fund
The Loan Fund is a private, non-profit organization that provides loans, capacity building and technical assistance to business owners and non-profit organizations throughout the state and the entire Navajo Nation. Loans are provided to new and existing businesses for equipment, inventory, building renovations and operating capital. Loans are provided to non-profits for such needs as bridge financing against awarded private and public contracts, capital improvements and equipment.
For more information: www.loanfund.org
Contact: Albuquerque: 505.243.3196 or 1.866.873.6746
New Mexico Economic Development Department
Community Development Revolving Loan Fund (CDRLF)
The CDRLF provides loans to New Mexico communities. Loans are available for projects which stimulate job creation and prosperity and may be used for infrastructure improvements, acquisition of real property, construction, rehabilitation, public facilities, and other real property investments.
- Maximum loan amount is $250,000 per project.
- Terms of repayment are negotiable, not to exceed 10 years.
- Interest rate is set at half the treasury bond equivalent rate.
- Private property may not benefit directly from this program.
- The political subdivision must pledge gross receipts tax to repay the loan.
Contact Kathy McCormick, 505.247.1750, X3643 or kathy.mccormick@state.nm.us.
WESST Corp
WESST Corp is a non-profit, economic development organization that provides business skills training, product marketing, development opportunities, and small loans (including SBA microloans) to viable start-up or growing New Mexico businesses owned by women and minorities.
For more information: www.wesst.org
Contact: 1.800.GO.WESST
LOAN GUARANTEE PROGRAMS
USDA Business and Industry Loan Guarantee Program
The purpose of this program is to improve, develop, or finance business, industry, and employment in rural communities. Businesses financed under this program must be located in rural areas under 40,000 in population and non-urbanized areas. Priority will be given to communities with populations under 25,000. The program provides businesses with a loan guarantee with up to 80% on loans for existing businesses with a maximum loan amount of $5 million. This loan program will finance businesses with working capital, machinery, equipment, and fixtures and commercial real estate. USDA administers the program and can provide certified lenders to package and process the loan.
For more information: www.rurdev.usda.gov
Contact: Albuquerque: 505.761.4953
US Small Business Administration (SBA)
The New Mexico SBA office offers opportunities for all prospective entrepreneurs to start, build and grow their own businesses. The SBA provides technical assistance, loans, procurement opportunities and other assistance to entrepreneurs and existing businesses alike. The SBA provides the following loan guarantee programs:
- 7(a)
- 7(a) SBA Express loans up to $350,000 (which may be used as a line of credit)
- 7(a) Community Express loans up to $250,000
- 7(a) Patriot Express loans up to $500,000
- 7(a) CAPLines up to $2 million
- 7(a) International Trade loans up to $2 million
- 7(a) Export Working Capital up to $2 million
- Microloans through nonprofit lending organizations listed in this publication
- 504 loans through the Certified Development Companies licensed through the SBA and also listed in this publication For more information: www.sba.gov/nm
Contact: New Mexico District Office, Albuquerque: 505.248.8225
EQUITY
Altira Group
Formed in 1996, Altira invests in companies that develop and commercialize energy technologies in the areas of natural resources, clean energy and electric power. Altira does not invest in projects for petroleum exploration and production or for power generation.
For more information: www.altiragroup.com
Contact: Denver, 303.592.5500 or dmcdermott@altiragroup.com
Arch Ventures
ARCH provides seed and early stage venture capital for technology firms, with a special expertise in co-founding and building technology firms from startup. ARCH has experience in investing in life sciences, physical sciences and information technology companies.
For more information: www.archventure.com
Contact: Austin, 512.765.5830 or cwbybee@archventure.com
Blue Sage Capital, LP
Blue Sage Capital is a $170 million private equity fund specializing in growth, recapitalization and buyout financings of middle market companies located primarily in Texas and the Southwest. Most of Blue Sage’s investments are in established, profitable companies with $5 to $100 million in revenues and $2 to $8 million of cash flow at the time of investment. Blue Sage does not specialize in any particular industry, but would consider a variety of manufacturing, distribution and business service companies.
Contact: Albuquerque, 505.843.4267 or beverly.bendicksen@bankofthewest.com
CVM
2575 Park Lane, Suite 200
Lafayette, CO 80026
303.440.4055
Contact: Ed Wetherbee
EWetherbee@coloradoenergy.com
Epic Ventures
Epic, founded by Zions Bank, Epic does not focus on a particular technology sector, but looks for companies with the potential for explosive growth. The firm prefers to invest in companies in the Western United States.
For more information: www.epicvc.com
Contact: Salt Lake City, 801.524.8939 or Todd@epicvc.com
Flywheel Ventures
Flywheel Ventures is a seed and early-state venture capital firm focused on information technology and physical sciences ventures in the Southwestern/Rockies region. The firm has offices in Santa Fe, Albuquerque and the Silicon Valley.
For more information: www.flywheelventures.com
Contact: Santa Fe, 800.750.7870 or trevor@flywheelventures.com
Fort Washington Capital Partners
Fort Washington has over $1.3 billion in private equity commitments and 23 years of experience. The firm has investments with 115+ underlying funds and 40 direct co-investments. The organization includes nearly 40 private equity and support professionals.
For more information: www.fortwashington.com
Contact: Santa Fe, 505.986.1552 or john.bessone@fortwashington.com
International Venture Fund (IVF) or Invencor, Inc.
Headquartered in the Silicon Valley, IVF also has an office in Santa Fe. It focuses on investing in companies in Arizona, Hawaii, New Mexico and Utah, but considers investments in other areas. IVF serves the investment gap between the angel community and larger venture funds.
For more information: www.invencor.com
Contact: Menlo Park, 650.330.1210 or richard@invencor.com
ITU Ventures
ITU finds, develops, and exits technology businesses. Typically these are companies that have emerged from research universities or institutions.
For more information: www.itu.com
Contact: Los Angeles, 310.777.5900 or Chad@itu.com
Mesa Capital Partners
Mesa Capital Partners is an early stage private equity firm focusing on high-potential small business in industries and geographic areas underserved by other capital providers. Mesa targets small businesses across a wide variety of manufacturing and services industries, typically outside sectors commonly considered “high-tech.” Investment candidates typically have annual revenues under $3 million. Equity investment sizes range from $500,000 to $2 million.
For more information: www.mesacapitalpartners.us/
Contact: Santa Fe: 505.428.2990
Murphree Venture Partners (MVP)
MVP typically invests in companies with revenue traction in the $3 million to $30 million range, but will occasionally invest in a startup entity. MVP invests in the Sun Belt region with offices in Houston, Austin, Baton Rouge and Birmingham.
For more information: www.murphreeventures.com
Contact: Houston, 713.655.8500 or patrick@murphreeventures.com
New Mexico Community Capital (NMCC)
NMCC provides investment, management and consulting experience to existing companies seeking equity financing. NMCC targets rural and underserved communities throughout New Mexico. Forty percent of its total fund is invested outside Albuquerque, Santa Fe and Los Alamos. Typical investments are between $500,000 and $1 million.
For more information: www.nmccap.org
Contact: Bernalillo: 505.924.2820 or 1.866.222.1552
Psilos Group Partners
Psilos has offices in New York, the San Francisco Bay Area and Santa Fe. The firm is currently investing in the healthcare services, healthcare information technology, medical device, medical instrumentation and specialty pharmaceutical sectors.
For more information: www.psilos.com
Contact: Santa Fe, 505.995.8500 or dcollins@psilos.com
Red River Ventures
Red River Ventures has $86 million of capital under management and has invested in 18 different companies since 2000. Red River currently invests in a broad spectrum of industries, including business and consumer services, healthcare, manufacturing and technology. The firm provides funding for business start-ups, expansions of existing businesses, recapitalizations and management led acquisitions.
For more information: www.redriverventures.com
Contact: Plano, 972.265.7946 or jim@redriverventures.com
Sun Mountain Capital
Sun Mountain’s regional direct investment programs do not focus on specific industry sectors or in a particular stage in the investment cycle. Sun’s portfolio companies reflect the investment opportunities indigenous to a particular region of the country and are diversified by both stage and sector.
For more information: www.sunmountaincapital.com
Contact: Santa Fe, 505.594.5474 or brian.birk@sunmountaincapital.com
Tullis Dickerson (TD)
TD focuses on several industry segments: biotechnology and life sciences, pharmaceuticals, health care services, and medical devices. TD has established, funded and assisted in the growth of dozens of public and private companies with revenues ranging from zero into the billions of dollars.
For more information: www.tullisdickerson.com
Contact: Greenwich, 203.629.8700 or tdickerson@tullisdickerson.com
Valley Ventures
Valley Ventures, with offices in Phoenix and Albuquerque, is an institutionally funded venture capital partnership with $85 million under management. It invests in and assists emerging growth companies in the greater Southwest.
For more information: www.valleyventures.com
Contact: Tempe, 480.661.6600 or Jock@ValleyVentures.com
Verge
Verge only invests in New Mexico companies and prefers to invest in the early stages: the seed or first round. Verge will make later-stage investments only in follow-on rounds of existing portfolio companies as their business models are validated and the risk factors are reduced. Their focus is primarily on technology business including life sciences, manufacturing technologies, optics, semiconductors, software, telecommunications and energy.
For more information: www.vergefund.com
Contact: Albuquerque. 505.247.1038 or tstephenson@vergefund.com
Vestor Partners, LP
Vestor is a private equity capital firm that invests with management in established businesses located principally in the Western United States. The company specializes in growing successful businesses with revenues of $10 million to $50 million.
For more information: www.vestor.com
Contact: Santa Fe, 505.988.9100 or dchase@vestor.com
Village Ventures
Village Ventures is a seed and early stage venture capital firm focusing on three primary sectors: consumer media and retail, health care and financial services. The company has built a platform, which it offers to other seed and early stage firms, to provide for collaboration, co-investment and administrative cost sharing.
For more information: www.villageventures.com
Contact: Santa Fe. 505.594.5474 or fsommer@villageventures.com
vSpring
vSpring is a traditional early-stage venture capital firm with over $350 million of committed capital under management. vSpring targets information technology and life sciences companies headquarter in the Intermountain West region. Primary areas of focus include enterprise software, networking and communications, security software, Internet, mobile computing, drug discovery, drug delivery, diagnostics, and medical devices.
For more information: www.vspring.com
Contact: Salt Lake City, 801.942.8999 or paul@vspring.com