Category Archives: Investment in New Mexico

Landscape Changing – But Still Good – for New Mexico’s Film Industry

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Eric Witt

Eric Witt, former Deputy Chief of Staff and Film Advisor for Gov. Richardson, 2003 – 2010

Elliott Location Equipment of Albuquerque is one of many New Mexico businesses that expanded dramatically after 2001, when the state initiated a successful program of tax incentives to attract film and television production here.

Owner Wayne Elliott had one water truck in 1988 when he hauled water to locations for The Milagro Beanfield War. A look at his website in 2011 (http://elliottlocationequipment.com) shows a full-service provider of trucks, trailers, drivers and special-effects equipment for productions throughout the western and Gulf Coast states. The film incentives program made that expansion possible, said Elliott, who added to his fleet of water trucks and other portable services over the years as he attracted five times the work — and five times the revenue — as he had before the state launched a program that offered 25 percent rebates for in-state film-related expenses.

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New Mexico Is Ready For Business

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The Small Business Investment Corp (SBIC) was created by state legislation in 2000 to provide equity or loan capital to small businesses in New Mexico. Support for this legislation rested on the knowledge that small businesses – those with 25 or fewer employees – are the backbone of the state, sustaining the economies of local communities where they are located.   Most new jobs in the state have been generated by small businesses, and small firms represent the majority of business enterprises in New Mexico.

While it may be a cliché, investing on Main Street instead of Wall Street has paid big dividends in New Mexico, where existing businesses have been strengthened and new businesses have sprouted as a result. Improvements in the economy are visible from Clovis to Farmington and many towns in between, where jobs, employees and communities have flourished.

The challenge recognized by New Mexico’s leaders was attracting new capital to businesses in small communities. Delivering capital to start-up firms was a similar priority, but difficulties arose around how to do it in a timely, cost-effective manner. The SBIC was created to address these challenges and to focus on making equity investments and business loans to New Mexico small businesses.

Most banks use a type of credit scoring matrix to determine if a loan will be made. Small businesses, particularly those just starting out, often have trouble qualifying for loans based on this type of scoring. In addition, small loans of $5,000 or more – those typically needed by small firms – are not very appealing to traditional lenders.
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Investment Capital Gives New Mexico Businesses a Boost

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The following article offers a historical perspective on the Finance New Mexico project.

As New Mexico’s lieutenant governor, one of my highest priorities has been to support small businesses throughout the state. I’ve owned a small business and know the challenges that confront people like me – particularly in finding the money and getting well-founded advice on how to start and maintain a business. The largest chunk of the business community is businesses that have fewer than 25 workers. While major employers like state, federal and local government, the military, financial service industry and health care providers provide a large number of jobs, small businesses are the ones creating new jobs and providing stability to smaller communities around the state.

In addition to an improved business environment and tax structure, providing investment capital has been a priority of our administration. Investments in large projects like Eclipse Aviation capture the headlines, but they’re not the only ones. Statewide, money to small businesses has been increasing. Private equity capital has been flowing into New Mexico at an accelerated pace, much of it aimed at the vast pool of technology developed at the national research labs and universities.

The State Investment Council has played a leading role in attracting venture capital funds. Since 1996, it has given money to funds that agree to set up shop in the state and invest in New Mexico companies. Those investments have increased over the past years and have helped New Mexico businesses. One of them helped Aridien, Inc., a Belen company that makes the desiccant products you find in packaging.

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