NM Collateral Assistance Program (CAP)

In order to support business growth in New Mexico and to create and retain jobs, NMEDD encourages banks and other financial institutions to make loans to small businesses in “under-served” markets. NMEDD can pledge cash to cover a collateral shortfall of a loan in order to enable financing that otherwise might not be available to a small business. The program is administered through the NMEDD’s Finance Development Team.

  • Special preference is placed on business owners who are women, US Veterans, ethnic minorities or part of other socially disadvantaged groups.
  • Special focus is on (but not limited to) projects in industries related to: intelligent manufacturing, sustainable & green industries, value added agriculture, tourism & outdoor, digital film & media located in rural areas.

Who Qualifies?

Eligible borrowers must meet these criteria:

  • Business purpose is one of the industries listed in the North American Industry Classification Systems (NAICS) codes list.
  • Business is considered a “small business” under the U.S. Small Business Administration
  • Employs 750 employees or fewer full-time equivalents.
  • The business is located in New Mexico.

Eligible Uses of the Loan Proceeds:

Loan proceeds can be used toward the following:

  • Any tangible or intangible asset purchase, including; construction, renovation or improvements of an eligible place of business;
  • Start-up costs
  • Working capital
  • Franchise fees
  • Equipment
  • Inventory
  • Bridge loans needed prior to the borrower obtaining permanent financing or support

How it Works:

  • Cash support up to 50% of the principal based on qualifying criteria for under collateralized loans.
  • Preference is placed on businesses located in rural areas, minority-owned, veteran-owned, job creation, generates income from outside of the state.
  • Prior to issuance of a loan, the participating Lender submits a CAP request to NMEDD FDT.
  • Once approved by NMEDD FDT, CAP approval is sent to Lender. This commitment can be called upon for up to 90 days after issuance.
  • Once the loan is finalized, NMEDD FDT funds the CAP contribution. A separate account is opened for each loan that is enrolled in CAP.
  • Within 15 business day of loan closing the lender submits the final loan information and notifies NMEDD FDT the loan was funded.
PROGRAM DOCUMENTS:    CAP Guide               CAP Overview                CAP Timeline

To learn more, please contact 505.827.0264 or email Johanna.nelson@state.nm.us.

Enrolled Banks:

Following is a list of actively enrolled lending institutions in the Collateral Assistance Program.  The Program is not limited to these institutions, NMEDD is actively enrolling lenders and will update this list as more lenders are enrolled.

Century Bank DreamSpring Enchantment Land CDC
First American Bank First National Bank First New Mexico Bank Las Cruces
First Savings Bank Lea County State Bank Lift Fund New Mexico
The Loan Fund Main Bank Pinnacle Bank
Pioneer Bank RCAC Sandia Area Federal Credit Union
Southwest Capital Bank Tierra Del Sol Housing Corporation WESST
Western Bank Western Bank of Clovis Western Commerce Bank
Western Heritage Bank    

Lender Enrollment:

To enroll in the program as a lender, please fill out and submit the following documents to Johanna.Nelson@state.nm.us or call: 505.469.6204

Loan Enrollment:

On a per project basis the following application will need to be filled out between lender and borrower and submitted:

  • Apply Here

    • Please note: Lenders submit the application