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<\/a>Paul Goblet, Investment Advisor, NMSBIC<\/p><\/div>\n
The New Mexico Small Business Investment Corp. was formed in 2001 to provide capital to the state\u2019s small businesses.\u00a0The original charter was narrowly defined and the organization had relatively little money to lend, but legislative amendments over the years allowed NMSBIC to formalize cooperative agreements with financial professionals and alternative lenders.<\/p>\n
The organization wasn\u2019t formed to compete with traditional banks that best understand local markets and clients and remain the best source of capital.\u00a0It exists to help those businesses that lack access to traditional banking sources or have been turned down by commercial lenders.\u00a0These include businesses with logical and creditworthy loan requests that were deemed too small or too risky or not well suited for the bank\u2019s lending categories. The borrower\u2019s collateral might have been weak or unacceptable or their credit scores might have been too low.<\/p>\n
Like a bank, only different<\/strong><\/p>\n Alternative lenders have worked aggressively with NMSBIC to make business loans in every New Mexico community.\u00a0Their primary goal is to be repaid on time, so they think and act like a bank when it comes to seeing a borrower\u2019s documents, tax files, accountant reports and collateral. But they\u2019re usually more willing than many banks to work with a borrower and try to understand and accommodate their needs.<\/p>\n The Loan Fund<\/strong><\/span><\/a>, with headquarters in Albuquerque, is the oldest and largest alternative lender in New Mexico (it just celebrated its 20th anniversary). It\u2019s also the largest lending partner of the NMSBIC, with a capacity of $7.5 million.\u00a0Since teaming up with NMSBIC in late 2004, the organization has loaned more than $13 million to almost 300 businesses statewide on behalf of NMSBIC.\u00a0While the organization has approved loans of up to $750,000, its sweet spot ranges between $25,000 and $100,000.\u00a0 The Loan Fund can be reached toll free at 866-873-6746.<\/p>\n ACCION New Mexico<\/strong><\/span><\/a> partnered with NMSBIC before the other organizations. Since its first loan on behalf of NMSBIC in February 2004, it has approved more than 1,500 loans worth a total of $17.5 million.\u00a0The average ACCION loan is just over $11,000, but the favored range is $5,000 to $25,000.\u00a0 Reach ACCION at 800-508-7624.<\/p>\n WESST<\/strong><\/span><\/a> is best known for its technical training assistance and most recently for building an outstanding business incubator in Albuquerque.\u00a0The new facility has allowed WESST to expand its efforts to help small businesses with the basics \u2014 including helping owners complete a business plan that can help them reach their goals and generate interest among lenders and investors. WESST is the smallest lending partner of the NMSBIC; its loans usually range between $5,000 and $25,000. The organization\u2019s lending chief, Kim Blueher, can be reached at 505-246-6900.<\/p>\n Article 129<\/p>\n Download 129_New Mexico’s Alternative Lenders PDF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The New Mexico Small Business Investment Corp. was formed in 2001 to provide capital to the state\u2019s small businesses through several alternative loan funds. Learn how to access these funds. Continue reading