Program
State Small Business Credit Initiative (SSBCI)
State Small Business Credit Initiative (SSBCI)
Eligibility
Not sure where to start? Complete this SSBCI interest form
Loan Participation Program
Businesses apply to the Loan Participation Program through a financial institution.
Eligible businesses include for-profit and nonprofit businesses in New Mexico.
Are you a business in need of capital?
Are you a lender wanting to get to a “yes” for your clients?
The SSBCI Program may be able to help.
The SSBCI programs administered by NMFA consists of a Loan Participation Program designed to increase access to capital for small businesses in New Mexico by reducing risk for lenders. The Loan Participation Program will provide credit support through the purchase of a portion of a loan made by a lender or through a separate loan made alongside a lender.
Start the Application Process
Phone: (505) 984-1454
Featured Resources
About the State Small Business Credit Initiative
The SSBCI programs are a partnership between NMFA and financial institutions, including banks, credit unions, and CDFI’s. The first step for businesses is to contact a financial institution about SSBCI or contact NMFA for more information. To find a lender that may be able to help meet your need for capital using the SSBCI programs, please talk to your current lender or contact NMFA.
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 complete the SSBCI interest form. Someone from NMFA will contact you to help you with the SSBCI program.
Information
What is SSBCI?
The State Small Business Credit Initiative is a federal program that provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities. In partnership with the NM Economic Development Department, NMFA has implemented two SSBCI-funded programs to assist small businesses throughout New Mexico, particularly those in underserved and rural communities.
Read more about the SSBCI program on the U.S. Department of the Treasury website.
Loan Participation Program - Benefits
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
Loan Participation Program - Loan Terms
Loans may be for lines of credit or term loans
Loans may be used for business startup or expansion, including owner-occupied 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 a 10-year term with 25-year amortization for real estate.