The New Mexico Finance Authority (NMFA) was created by the New Mexico Legislature in 1992 to finance infrastructure projects for the state’s counties, cities, and certain departments of state government. The objective was to provide low-cost financing for borrowers, particularly those in disadvantaged communities, who might not otherwise be able to access the tax-exempt bond market on a cost-effective basis.
The 1992 statute created the Public Projects Revolving Fund (PPRF) as the vehicle to accomplish this financing objective. Building upon the success of the PPRF, the Legislature broadened NMFA’s financing options to include targeted programs for vital water and wastewater projects as well as transportation, community facilities, health, safety, and economic development projects. As authorized by the statute, NMFA issues tax-exempt PPRF bonds to obtain the funds it lends to New Mexico governmental entities. The statute also created the Governmental Gross Receipts Tax to serve as a credit enhancement for NMFA’s bonds.
NMFA has become a reliable source of financing for a broad range of projects and offers different financing programs for communities and businesses to improve the quality of life in New Mexico. With a mission-driven philosophy, low interest rates, and no loan fees, NMFA helps its clients successfully finance the projects that make their communities stronger, safer, and more prosperous. NMFA believes in and follows its mission of “Advancing New Mexico by financing impactful, well-planned projects” and its vision to be “New Mexico’s partner in building economic prosperity and stronger communities.”