By Jim McCormick, Senior Vice President, Century Bank

One loan isn’t the same as another when borrowing money to build or sustain a business. Bank loan agents act as matchmakers, fitting business owners with the type of credit they need for specific business needs.

Most banks offer a menu of loan options tailored to an entrepreneur’s individual circumstances — his or her credit history, cash flow, collateral, capacity and capital. The loans can be conventional, or they can be guaranteed with backing from the U.S. Small Business Administration if the business would otherwise have a hard time qualifying for a conventional loan and the owner needs more flexible loan terms, such as a longer repayment schedule and less stringent collateral requirements.

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

Editors Note: This program is now administered by the New Mexico Economic Development Department. Find updated information about the Collateral Support Participation Program.

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 →

By Joe Justice, Loan Officer, The Loan Fund

Jose Ocampo launched his Santa Fe Exclusive Honda and Acura auto repair and parts business 13 years ago in a small building in the New Mexico capital. He outgrew the space within three years and moved to a larger facility nearby.

As his business continued to grow, Ocampo started looking around for “a building with better parking and more room” that would be better to meet his customers’ needs and comfort.

About a year ago he found an ideal spot on Siler Lane with a metal building with 2,000 square feet of warehouse space. The lot was particularly attractive because it could accommodate construction of a 2,000-square-foot workspace addition. Continue reading →

Jordan van Rijn, NM Loan Officer, Accion New Mexico ∙ Arizona ∙ Colorado

Many Americans long to see where their talents as inventors or craftsmen or cooks can take them. But businesses often struggle in their early years, and this makes some lenders wary of financing enterprises that don’t have an established track record. After repeated rejections from potential funders, many entrepreneurs simply give up.

Organizations like Accion are one option for the aspiring entrepreneur who can’t secure a loan through a more traditional financial institution, such as a bank or credit union. But getting a loan requires some groundwork, no matter where she looks.

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F. Leroy Pacheco, CEO, The Loan Fund

“GOOD! GOOD! and more GOOD!” exults an online review from a satisfied customer of Albuquerque’s El Dorado Bakery. “This little gem of a bakery is probably one of the finest things in Albuquerque’s South East ‘San Jose’ neighborhood. …  People are lined up out the door on a Saturday and Sunday morning.”

Many of those early birds are Mexican immigrants and neighborhood residents who hunger for the traditional Mexican breads and pastries that make El Dorado unlike any other bakery anywhere near the intersection of Broadway and Gibson boulevards Southeast. The bakery also serves breakfast and lunch all week and features menudo on weekends. Continue reading →