By Alfonso Ramos, Loan Officer I, Accion New Mexico

Metta Smith, Director of Lending and Client Relations, Accion Albuquerque location

Small businesses in need of a quick, modest-sized loan often have little choice but to turn to high-cost, yet easy to access, alternative credit products. But New Mexico business borrowers have a new option.

Accion had long been looking for ways to speed up the process of making microloans to borrowers who don’t qualify for loans from traditional lenders and need a relatively small amount of money to take advantage of a time-sensitive business opportunity. Accion also wanted to help businesses respond quickly when faced with an urgent need.

Almost a year ago, the nonprofit lender began piloting quick-turnaround “Presto Loans” of $8,000 or less with interested applicants. The pilot project was a success — with 285 loans totaling $939,000 — and Accion has recently cemented its offering of Presto Loans, moving toward Continue reading →

By Chris Rowberry, Senior Lending Officer, Los Alamos National Bank

When a business needs to buy expensive equipment and doesn’t have the operating cash to buy it outright — or doesn’t want to commit liquid assets to such a big-ticket item — the owner will often approach a bank for financing. The same is true when a business has cash flow shortfalls because its inflows and outflows are out of sync.

Most banks have commercial lending departments that can offer the business a loan to finance equipment purchases or cover short-term obligations. Two of the most common loan types are term loans and revolving lines of credit. An experienced commercial banker can help the business decide which loan is most appropriate for its situation. Continue reading →

By Cathy Sorenson, Community Development Officer, The Loan Fund

Opening a business that sells authentic, made-from-scratch Italian gelato requires substantial startup capital, which is why Daniel Romero and Lori Griego worked hard to get the right ingredients to finance their Frost Gelato Shoppe franchise.

While approval was quick from The Loan Fund, a private nonprofit micro-lender in New Mexico, the amount of money the pair needed to launch the business required contributions from two other parties: micro-lender ACCION and Los Alamos National Bank.

It was worth the effort, Romero said. Business is better than he anticipated at the franchise’s ABQ Uptown mall site — especially considering that his frozen-dessert shop opened in late November, on the cusp of a bone-chilling winter. Continue reading →

By Joe Justice, Loan Officer, The Loan Fund

Steven Horwath spent his career as a fitness trainer working at Albuquerque-area gyms with highly motivated, competitive athletes. Two years ago, he leased a 3,000 square foot building on San Francisco Road and opened his own gym to cater to this elite crowd. Turning Point Strength and Conditioning provides structured, individualized workouts and state-of-the-art equipment designed to build strength, speed and agility.

Despite his years of expertise and a 40-page business plan, Horwath found a traditional bank unable to lend him $60,000 for his startup. However, the bank’s loan officer referred the aspiring business owner to The Loan Fund, a nonprofit community development financial institution (CDFI) that helps business owners and nonprofit organizations throughout New Mexico by providing loans, training and business consulting.

Continue reading →

By Finance New Mexico with assistance from the New Mexico Finance Authority

Editors Note: This program, now known as the Collateral Assistance Program (CAP), is now administered by the New Mexico Economic Development Department Borrowers must access the program through their local lender.

In 2011, New Mexico was authorized to receive $13.1 million from the U.S. Treasury Department as part of the State Small Business Credit Initiative — a product of the Small Business Jobs Act of 2010.

The funds are channeled to the Collateral Support Participation program administered by the New Mexico Finance Authority in collaboration with the New Mexico Economic Development Department. The program helps creditworthy small businesses leverage private lending when they can’t obtain the capital required to expand and create jobs. Continue reading →

By Matt Loehman, The Loan Fund

Starting a business takes guts, but it also takes money. Obtaining that startup capital is one of the biggest challenges facing aspiring entrepreneurs.

Some may find it easy to secure credit: They’re typically the ones with good collateral, a high credit score and a fully developed business plan. But that’s not the case for many small business owners in New Mexico who find it challenging to access credit through traditional sources.

Small business owners who do have difficulty accessing credit from traditional lending sources can contact a community development lender, which is typically more than just a place to go when the banks say “no”. Continue reading →