Copyright © 2019 Albuquerque Journal
Thousands of small New Mexico businesses have received about $82 million in loans since 2001 from some of the state’s most-prominent microlending organizations, but few recipients know the money they got came from state funds.
The New Mexico Small Business Investment Corp., a nonprofit founded in 2001 under the Small Business Investment Act, has managed about $47 million from the state’s Severance Tax Permanent Fund to create jobs through small local businesses. It invests the money in microlending organizations like Accion and the New Mexico Community Development Loan Fund, which in turn pump those dollars into new startups and existing businesses that generally can’t get credit from traditional lending institutions.
Recycling repaid loans
The SBIC has provided about $23 million since 2004 to microlenders, allowing them to approve some 4,500 loans to small businesses in 31 of New Mexico’s 33 counties. By recycling repaid loans back into the program, the microlenders have channeled nearly $82 million in credit over the years, creating and supporting about 12,300 jobs across the state, according to the SBIC’s annual report for fiscal year 2018.