Opportunity Enterprise Revolving Fund

All information provided in the project application should be considered public information and is subject to the Inspection of Public Records Act.

When can I apply?

• The application for the first round of the fund closed on July 31, 2023.
• The application for the second round of the fund closed on April 1, 2024.
• 25% of the total loan fund was available in the first round.
• The remainder of the loan fund will be available in the round that closed April 1, 2024.
• Subsequent application rounds will be offered if funds are still available.

Is there a benefit to applying early?

The loan fund amounts are limited as listed below, therefore applying in an early round would avoid the funds already being allocated to a given county or sector. However, there is no benefit to applying early within a round. All applications will be reviewed and prioritized after the round closes.

• No more than 25% of the total fund or $17,500,000 to any one county;
• No more than 25% of the total fund or $17,500,000 to any one project;
• No more than 50%  of the total fund or $35,000,000 to any one sector.

How do I apply?

• The application is available online at nmfinance.com.
• The application system requires that you set up an account, which will allow you to save your application in progress. This means you can work on your application, save your work, and return to the application to complete it and submit it. The application must be submitted by an Authorized Officer, as defined below.

 What is an Authorized Officer?

An Authorized Officer is the person authorized by the applicant as having the requisite power and authority to sign the Officer’s Certificate and legally bind the applicant to its obligations under the Loan Agreement.

How are “Urban,” “Rural,” and “Frontier” defined?

• Urban is a community with a population greater than 60,000 and Class H counties (e.g. Los Alamos)
• Rural is a community with a population under 60,000 and over 15,000
• Frontier is a community with a population under 15,000 or Native American lands or a federally designated Colonias in New Mexico

• The interest rate will be equal to 60% of the Wall Street Journal prime rate on the date the loan is approved, but will be no less than 3%. The interest rate is fixed for the term of the loan.
• The loan term will be no more than thirty years.
• Interest-only payments will be due the first three years.
• After the third year, principal and interest payments will be due monthly.
• The loan may be paid off in advance with no pre-payment penalty.

Loan amounts are not to exceed $17,500,000.

Loan funds may be used for purchasing, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining land, buildings or infrastructure.

The funds must be used to create or expand economic development opportunities within the state.

The application process will require documents evidencing project readiness, creditworthiness, and any other information requested by OERB and NMFA. Documents may include but are not limited to the following:

• Certification from opportunity enterprise partner that proceeds will be used for
  an Enterprise Development Project
• Ownership structure of the Eligible Applicant (for each owner detailing name,
  address, percentage ownership);
• Eligible Applicant legal entity type and all entity formation documents, including a
  certificate of good standing from the New Mexico Secretary of State, if applicable
• Sources and uses of investment;
• Project planning documents including site and design plans and project budget;
• Copy of any license, zoning, permitting or other regulatory requirements, as
  applicable;
• Business plan or feasibility study and five-year proforma financial statements;
• Complete list of outstanding loan(s) to the Eligible Applicant, member, partner or stockholder of the Eligible Applicant;
• Authorization to obtain a credit report of the Eligible Applicant and the guarantor, as applicable;
• Current balance sheet and year-to-date profit and loss statement for the Eligible Applicant, dated not more than 90 days prior to the date of Application, a fiscal year-end balance sheet, and the Applicant’s profit and loss statement for the prior three years or audited financial statements, as applicable;
• Federal income tax return for the prior two years on all guarantors and co-borrowers, as relevant;
• Copies of the Eligible Applicant’s federal income tax returns for the prior three years if the balance sheets and profit and loss statements are not audited by a certified public accountant;
• Sufficient evidence that other means of financing the proposed project are unavailable or insufficient; and
• If the Eligible Applicant is a newly created entity formed for the sole purpose of developing or operating the proposed Enterprise Development Project, the Applicant shall provide the information for the Eligible Applicant’s existing entities, if any, the Eligible Applicant personally; and
• Any other information requested by the NMFA to evaluate the Application.

• Project applications are reviewed for completeness by NMFA staff.
• Complete project applications are reviewed for eligibility and suitability by EDD and NMFA staff.
• Eligible projects are scored and ranked according to the criteria in the Opportunity Enterprise Review Board Evaluation and Prioritization Policy.
• The ranked project applications will then be reviewed by the OERB Project Review Board that will prioritize the project applications.
• Prioritized project applications will go to the entire Opportunity Enterprise Review Board which will determine which projects are recommended to NMFA. An applicant whose project is recommended to NMFA will be invited to complete the NMFA loan application.
• The loan application will be required of all applicants whose projects are recommended to NMFA by the Opportunity Enterprise Review Board.
• The loan application will be reviewed to assess the applicant’s ability to repay the loan and will be underwritten according to NMFA policies. Loan terms will be determined in the underwriting process.
• Please note that the loan application review process will involve a thorough examination of documents and information provided. Applicants may be asked for additional information during the underwriting process.

Applications will be scored and ranked according to the Opportunity Enterprise Evaluation and Prioritization Policy. A link to this policy is here.

All applicants will be required to authorize NMFA to obtain credit reports on all owners and guarantors.

Equity Requirement: Applicants are required to contribute a minimum of 10% of the
loan amount in the form of owner contributions, cash or in-kind, or down payment.

Collateral; Loan-to-Value Requirement: Collateral must be in the form of real property, e.g. land, buildings, and equipment. The loan-to-value ratio will be up to 80%.

Guarantees: All loans will require personal and/or corporate guarantees from one or more of the following persons:

− a partner, or member of the Applicant
− a joint venturer with the Applicant
− any stockholder of the Applicant
− the parent corporation or a partner, member, or stockholder of the parent corporation if the Applicant is a subsidiary

• No more than $17,500,000 of the total fund may be awarded to a single project.
• No more than 25% of the total fund ($17,500,000) may be invested in one county.
• No single industry as defined by the two-digit NAICS code may constitute more than 50% of the total fund.

OERF borrowers will be required to submit quarterly financial statements, and a detailed reporting package that will include:
• Latest complete financial statements
• Business performance report including rent rolls
• Brief narrative on project completion status, project budget, business performance
including occupancy data and rent rolls, (as applicable), and economic impact including
job creation metrics
• Certification that all representations, warranties and covenants remain true and correct
• Certification that there has been no change in business ownership/change in control

NMFA reserves the right to request additional information for monitoring purposes

How are “Urban,” “Rural,” and “Frontier” defined?

• Urban is a community with a population greater than 60,000 and Class H counties (e.g. Los Alamos)
• Rural is a community with a population under 60,000 and over 15,000
• Frontier is a community with a population under 15,000 or Native American lands or a federally designated Colonias in New Mexico

The Opportunity Enterprise Revolving Fund is governed by the Opportunity Enterprise Review Board in partnership with the New Mexico Economic Development Department, and is administered by the NMFA.