Until cannabis is legalized by the U.S. federal government, cannabis businesses have limited banking and loan options. But access to capital in New Mexico has improved since legislators authorized the New Mexico Finance Authority to offer microloans of up to $250,000 to small businesses engaged in the sale or production of cannabis.

To be eligible to participate in the Cannabis Microbusiness Loan Program, businesses must have no more than one location licensed by the Cannabis Control Division of the New Mexico Regulation and Licensing Department. Other criteria are related to the number of plants, ownership of the business, collateral, and loan underwriting. Funds may be used for equipment and systems, structures, supplies, and working capital.

Loan terms are designed to provide a short-term financial boost. Payments to principal are deferred for the first two years, allowing borrowers to ramp up operations during the interest-only period. Loans of $100,000 or less with terms of three years or less offer a fixed interest rate of 2%. Loans over $100,000 and loans that have a term of more than three years offer a fixed interest rate of 3%. The maximum loan period is five years, and there is no penalty for early pay-off.

The Finance Authority has partnered with US Eagle Federal Credit Union, and borrowers must have a checking account there by the time of loan closing.

Read all of the Cannabis Microbusiness Loan Program criteria.

Find information at the state’s Cannabis Control Division about becoming a licensed producer, manufacturer, retailer, courier, or research laboratory.