Financial Assistance
JOB TRAINING FUNDS
Job Training Incentive Program (JTIP)
This labor training program provides up to 1,040 hours of pre-employment (classroom) and on-the-job training for businesses. Training may be conducted by the company, educational institution, or other sources. The state will reimburse up to 50% of trainees' wages in urban areas and up to 75% if your business is located in a rural area of the state (to a maximum of 1,040 hours). In addition, the state will pay 100% of the cost of classroom training provided by New Mexico educational institutions. Jobs meeting the requirements of the High Wage Jobs Tax Credit are eligible for an additional 5% of wage reimbursement.
Step-Up is JTIP’s newest training program only available to businesses in rural communities. This program will provide limited training for existing employees on new equipment and/or procedures.
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QUALITY TRAINING
IS0 9000 and New Mexico 9000
ISO is a set of quality management standards recognized by 161 countries. Most major companies in the United States, Mexico, Canada, Europe, and Asia require their suppliers to be ISO compliant. ISO certification can be a lengthy and expensive process and that is why the Economic Development Department created New Mexico 9000. Through New Mexico 9000, businesses may obtain IS0 9000 certification on a sliding fee scale and the process takes only one year.
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DEBT FINANCING
FEDERAL LOANS
SBA 7(a)
http://www.sba.gov/index.html
This loan provides businesses with an 85% guarantee on loans up to $150,000 and a 75% guarantee on loans of $150,000 to $1.5 million. The loan will finance working capital, equipment, machinery, fixtures and real estate.
SBA 504
http://www.sba.gov/index.html
This loan provides expanding small businesses with 90% financing to purchase real estate; make lease improvements; buy and install machinery, equipment and fixtures; and pay soft costs associated with the project.
SBA Export Working Capital Funds
http://www.sba.gov/index.html
This loan assists lenders responding to the needs of exporters seeking short-term working proceeds can be used to finance labor and materials for exporting, and purchasing or servicing manufacturing goods for export.
USDA Business and Industry Loan
http://www.rurdev.usda.gov/nm/rbs.htm
The purpose of this loan program is to improve the economic and environmental climate in rural communities. Businesses financed with these funds must be located in rural areas with populations less than 50,000. However, priority is given to businesses located in communities with populations under 25,000. This program will guarantee up to 80% of loans up to $5 million. The loan will finance businesses with working capital, machinery, equipment, fixtures and real estate. The USDA administers the program and provides certified lenders to package and process the loans.
Smart Money
http://www.nmfa.net/loan/?t=SMART+money
The New Mexico Finance Authority oversees this $10 million loan fund. NMFA partners with New Mexico banks to offer qualified businesses fixed rate loans reflecting the current U.S. Treasury rate. Terms and interest are negotiated between the borrower and the bank. For every $50,000 borrowed, at least 1 job must be created. Preference is given to projects in rural areas.
MICRO-LENDERS
ACCION
http://www.accionnewmexico.org/
This nonprofit organization makes loans to small business owners who do not have traditional bank credit. Loans are made for funds up to $50,000. This program will provide financing for merchandise, equipment, expansion or working capital. In addition, ACCION also provides companies with general technical assistance.
WESST Corp
http://www.accionnewmexico.org/
Another nonprofit group which provides business training and small loans to New Mexico businesses. Their staff can assist businesses in obtaining loans up to $50,000. Funds may be used to for merchandise, equipment, expansion or working capital.
EQUITY FINANCING
Equity financing from venture capital or angel investors may, or may not, have to be repaid; but financers own a portion of the company and desire a higher return than traditional lenders
New Mexico Angels
http://www.nmangels.com/
NMA invests in New Mexico-based high growth potential early stage and seed companies. It is not a venture fund and does not make direct investments. It serves as an intermediary between its members and potential investment opportunities.
State Investment Council
http://www.sic.state.nm.us/private_equity.htm
The New Mexico State Investment Council has joined forces with private equity firms to invest funds in private businesses.
New Mexico Community Capital
http://www.nmccap.org/
Provides equity capital and business growth services to qualifying New Mexico businesses. This fund is particularly interested in funding light manufacturing, sustainable energy, and consumer products.
Coronado Ventures Forum
http://www.cvf-nm.org/
Brings potential venture capital investors together with targeted companies. Coronado Ventures brings private investors together with businesses in need of early stage private equity financing.
Mesa Venture
http://www.mesacapitalpartners.us/
Invests in small businesses with high growth potential in industries and geographic areas which are underserved by other capital providers.
Flywheel Ventures
http://www.flywheelventures.com/index.php
A seed and early-stage venture capital firm focused on information technology and physical sciences ventures in the Southwest/Rockies region.
COMMUNITY-ASSISTED FINANCING
Industrial Revenue Bonds
These bonds are utilized by companies as a tool to reduce their property and compensating taxes. A government entity must approve the issuance of the bonds, with the proceeds and repayment flowing through that entity. Businesses enter into a lease agreement with the bond issuer, eventually purchasing the property for a nominal fee at term. Specifics of the bond issuance are determined by the local government with the length from 20-30 years. The business is responsible for purchasing or selling the bonds.
Community Development Incentive Act
Communities may exempt a business from local property taxes for up to 20 years. The business will still be responsible for state property taxes. This program is designed to give communities a financing tool for projects which may be too small to warrant the expenses associated with industrial revenue bond financing.