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The state is getting federal dollars to help boost small business investment across New Mexico.
The New Mexico Economic Development Department on Tuesday announced the state received $74.4 million from the U.S. Department of Treasury’s State Small Business Credit Initiative.
The money will be used to “boost capital assistance and invest in socially and economically disadvantaged businesses,” according to the release.
The state’s Economic Development Department will use the money for venture capital/equity and collateral support programs.
EDD said it will work with California-based Avivar Capital to advise the venture capital and equity program development, and to help identify capital needs for socially and economically disadvantaged business owners in the state.
EDD has also requested proposals from investment funds to help underserved businesses grow and create jobs.
About $9 million will be put towards the department’s Collateral Assistance Program. The program improves private lending to small businesses “by bridging collateral requirements at banks and financial institutions,” according to the news release.
“Small businesses are the backbone of so many New Mexico communities, but they often have difficulty finding and qualifying for the assistance they need to grow and create jobs,” Gov. Michelle Lujan Grisham said in a statement. “We now have more capital to support small businesses, making them more resilient and better able to serve the needs of their communities.”