State Small Business Credit Initiative (SSBCI)

Are you a business interested in SSBCI, but aren’t sure which program is right for your needs and don’t have an existing relationship with a lender? NMFA may be able to help. Contact business@nmfa.net or call (505) 984-1454 and ask for the Lending Department.

Are you a business owner in need of extra support to help your business thrive? The New Mexico SSBCI Technical Assistance program may be able to help. Visit NM SSBCI Technical Assistance for information about no-cost financial advisory, legal advisory, and accounting assistance and workshops available to New Mexico’s businesses.

The SSBCI LPP provides credit support through the purchase of a portion of a loan made by a lender or through a separate subordinate loan made alongside a private lender. The subordinate loan can reduce the bank’s LTV and the borrower’s down payment requirement (similar to an SBA 504). These can lower the borrower’s debt service requirement.

Benefits to Lenders:

– Reduces risk

– Allows lenders to offer more competitive terms

– No fees

– Can reduce a borrower’s debt service requirement  

– Will help lenders approve loans that might otherwise be declined

Businesses apply to the Loan Participation Program through a financial institution. 

Eligible businesses include for-profit and nonprofit businesses in New Mexico.

Loans may be for lines of credit or term loans

Loans may be used for business startup or expansion, including facility purchase, construction, or renovation; working capital, equipment, inventory, technology, and other uses.

Loan amounts may be between $50,000 and $7,500,000

Loan terms depend on what the funds are used for and range from up to 36 months for working capital to up to 25 years for real estate.

Benefits to Lenders

– Reduces risk of loss

– Allows lenders to approve loans that might otherwise be declined

– If a lender has a loss, the loss amount would be covered by the reserve pool

Financial institutions that are lending to small businesses in New Mexico are eligible to apply to participate in the program. Financial institutions may include banks, credit unions, and CDFIs.

Businesses with fewer than 100 employees are eligible to apply to the Capital Access Program through a lending institution. Other business eligibility requirements are found in the Capital Access Policy.

Once approved, a participating financial institution (PFI) enters into a lender agreement with NMFA and establishes a loan loss reserve account capitalized by premium payments. For each enrolled loan, premiums are paid by the borrower and the PFI (up to 7% of the loan amount in total), and matched by SSBCI, making total premium contributions up to 14% of the total loan amount for each enrolled loan. Over time the balance in the loan loss reserve account grows as additional loans are enrolled. The balance of the loan loss reserve account may be used by the PFI to cover losses from the default of any small business loan enrolled in the program.

Loans may be for lines of credit or term loans

Loans may be used for business startup or expansion, including facility purchase, construction, or renovation; working capital, equipment, inventory, technology, and other uses.

Loan amounts may be between $10,000 to $1,500,000

Loan terms are up to ten years