New Mexico Business Resource Center
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Business Loan Capital

Banks provide most capital for business, either alone or in conjunction with loan guarantee programs. There are private, not-for-profit, non-traditional lending programs in New Mexico which work primarily to benefit low-income individuals who do not qualify for bank loans. It is difficult to acquire venture capital for highly innovative projects that require substantial investment. There are a few organization in the State that specialize in this area. In addition, there are specialized loan programs for such as things as Native American projects, agriculture, and exporting. Grants for business start-up or development only exist under very specialized conditions. Federal agencies such as the Small Business Administration (SBA) and the Bureau of Indian Affairs (BIA) operate a variety of loan programs that primarily work in conjunction with banks. We have tried to cover most of these programs. There are a number of programs that provide capital subsidies to businesses. These programs can provide money to offset salary and wages, provide for employee training; help subsidize research and development or abate of interest rates and taxes for specialized purposes.

The Community Development Block Grant Program
The Community Development Block Grant Program promotes economic development and job creation by providing assistance to cities and local governments. For cities with populations greater than 50,000, the U.S. Department of Housing and Urban Development administers the program. The Executive Office of Communities and Development (EOCD) administers the program for smaller cities. Local government can use CDBG funds to re-lend to private business at very favorable rates to help attract firms to a community.

Contact the State Economic Development Department (505) 827-0030 or:
U.S. Department of Housing and Urban Development
New Mexico State Office
625 Truman Street, NE
Albuquerque, NM 87110
(505) 262-6463

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Last Updated on October 16, 1998