Copyright © 2019 Albuquerque Journal
Small Business Investment Corp. executives say a doubling of its lending capacity will allow the SBIC to offer funds to more microlending organizations, while also increasing lines of credit for current SBIC lending partners.
A new law, which took effect July 1, raises the amount of money the SBIC can manage from the state’s Severance Tax Permanent Fund, from 1 percent of the fund’s total value previously to 2 percent now. There was $5.2 billion in the fund as of March 31, meaning the SBIC will now receive at least $50.2 million more in severance tax capital to manage on top of the $47 million it already administers.
To date, the SBIC has committed $23.4 million in credit to five different lending institutions, including DreamSpring (formerly Accion), New Mexico Community Development Loan Fund, the New Mexico Mortgage Finance Authority, Rio Vista Growth Capital, and WESST Corp. It’s now discussing new lines of credit with more local lenders, and with some out-of-state Community Development Financial Institutions that lend to small businesses in New Mexico.
To date, through recycling of repaid loans, SBIC’s current lending partners have extended nearly $82 million in credit to businesses around the state.