Category: State Incentives, Grants & Loans
AGENCY: North Central New Mexico Economic Development District (NCNMEDD) DESCRIPTION: The Tri-County Regional Revolving Loan Fund is an incentive implemented to assist counties impacted by program changes experienced by Los Alamos National Laboratory (LANL).
• The types of organizations and projects that may be financed include:
• Locally-owned enterprises in which a major portion of revenue accrues to the business and employment opportunities are expanded;
• Newly established businesses with a financial condition unsuitable of accessing traditional financing sources;
• Small manufacturing, technology-based or service businesses representing a realistic and demonstrated potential for economic growth;
• Enterprises that export products nationally or internationally, or further process raw materials indigenous to northern New Mexico;
• Projects that diversify the economy or substantially enhance the regional tax base; and
• Projects not requiring loan guarantees available from other sources.
• Eligible uses of funds include:
• Acquisition of land and buildings;
• Building construction or modification; and
• Purchase of equipment; and working capital.
• Eligible counties include Los Alamos, Rio Arriba, Santa Fe, and parts of Sandoval and Taos.
• Maximum Program Benefits: There are no fixed loan limits; however loans up to $100,000 and at least $10,000 are preferred.
• Equity: A minimum 10%.
• Maturities: Generally five to seven years for capital assets and shorter periods for working capital.
• Rates: Loans are fixed during the loan term at a level of near (within 100 to 200 basis points) the prevailing prime rate.
• Fees: An origination fee of 1% of the loan amount will be charged, with a minimum of $250. If the loan is not approved, the fee will be refunded.
• All loans must have no less than a one-to-one match from other private sources.
• One job must be created or retained for every $25,000 loaned.
• Collateral, endorsements and key person insurance is required.
• A pre-application conference with NCNMEDD staff is recommended to discuss eligibility and any special requirements.
• For additional information, visit the NCNMEDD website at http://www.ncnmedd.com or call (505) 827-7313.