News | New Mexico State Treasurer's Office

Capital for Main Street

Paul Goblet
NM Small Business Investment Corp.

State Treasurer James B. Lewis serves as an ex-officio board member on multiple boards and commissions in New Mexico. One such board he serves on is the New Mexico Small Business Investment Corporation (NMSBIC), established by the Legislature in 2001 to investment some of the state’s capital in small New Mexico business ventures.

For the past two years we have all read about Wall Street, the woes in the banking community, foreclosures, bailouts, and a host of negative issues that started in New York City, yet the ripples have now washed upon the shores of New Mexico. What many business owners don’t know is that the state has been actively trying to support small businesses, primarily through alternative and micro lenders, since 2004. The NMSBIC was designed to keep some of the state’s investment capital on Main Street, instead of investing it all on Wall Street.

Many small businesses, particularly those in rural areas, simply can’t qualify for traditional loans, or their businesses fall outside the lending criteria imposed due to the recent recession and current lending contractions by traditional lenders. The NM Community Development Loan Fund (The Loan Fund), ACCION NM, WESST Corp. and other alternative lenders have helped bridge that gap. The NMSBIC has created partnerships with these alternative lenders and provided capital to support small business lending. Over the course of the last 5 years, the NMSBIC has helped fund over 1,800 small business loans in virtually every community in the State. In addition, the NMSBIC helped develop a financial literacy website and has written over 125 business-related articles that can be found at www.financenewmexico.org.

Since the investment capital comes from the Severance Tax Permanent Fund, representatives of the State Treasurer’s office and the State Investment Council serve on a board which oversees the NMSBIC. State Treasurer James B. Lewis shared the following observation: “Small businesses are the backbone of New Mexico’s economy and I believe the state must continue to support these initiatives to create more jobs, build the economy and strengthen communities. Once small businesses succeed, new tax revenue is generated for state and local governments, allowing improved funding for education, public safety, transportation and other public services for the taxpayers.” Since this statewide lending program took effect in 2004, over $24 million has been loaned to businesses employing over 4,800 New Mexicans.

For more information visit www.financenewmexico.org