Estevan Hernandez started growing mushrooms in his garage about 12 years ago while still in high school. It was an interest he developed after adopting a vegan diet.

Years later, after embarking on a career in electrical engineering, Hernandez decided to focus on his mushroom passion. He left his job, studied mycology under a master grower to become a Senior Mycologist, and opened an urban farm. He also turned to The Loan Fund, a nonprofit lender, for funds to help him start New Mexico Fungi, his Albuquerque business.

“I would probably still be working out of my garage, and I certainly wouldn’t be operating on the scale I am now,” said Hernandez.

New Mexico Fungi grows about a dozen mushroom species year-round using temperature-controlled incubators and rotating crops to produce Enoki, Chestnut, Lion’s Mane, Reishi, Shiitake, Shimeji, Turkey Tail, and several oyster varieties including black pearl, blue, golden, and pink. Harvesting about 140 pounds each week, the company meets the needs of customers searching for fresh produce and medicinal fungi, as well as commercial customers such as Vernon’s Speakeasy and Los Poblanos.

Hernandez also sells mushroom growing kits through the company’s website and shares his knowledge through workshops that provide participants with a growing kit, a live tissue culture, and a 30-minute session with the master grower. His course highlights the medicinal and nutritional benefits of fungi, which obtain nutrition from matter on which they are grown rather than relying on the sun.

“I’m very focused on education because there is a lot of miseducation,” he said.

According to Hernandez, New Mexico Fungi is one of ten mushroom growers in the state and one of just three operating on a large commercial scale. The company employs one worker and obtains additional help from interns. In 2022, Albuquerque The Magazine bestowed its Best Specialty Food Shop award on the company, which is also a certified New Mexico True brand.

“I owe a lot to The Loan Fund,” said Hernandez. “None of this would have been possible without their support.”

The Loan Fund offers a range of loan options tailored to the unique needs of small businesses and nonprofit organizations. Financing can be used for startup expenses, equipment, working capital, owner-occupied commercial property, and expansion.

As a Community Development Financial Institution (CDFI), The Loan Fund has funded more than 2,100 loans and supported the creation or retention of nearly 12,000 jobs in New Mexico alone since its founding in 1989. Loans range in size from $5,000 to $1 million, with an average of $110,000.

Learn more about financing offered by The Loan Fund. Visit New Mexico Fungi to purchase mushrooms or learn more about fungi.