New Mexico Approves Public Financing for Licensed Cannabis Microbusinesses
"The New Mexico Finance Authority (NMFA) Oversight Committee has approved a loan program to help licensed cannabis microbusinesses succeed—specifically those living in rural communities or disproportionately affected by previous cannabis law enforcement.
"Through the Cannabis Microbusiness Loan Program, NMFA looks forward to providing access to capital to help even more New Mexicans benefit from the economic opportunities created by the legalization of adult-use cannabis," NMFA CEO Marquita Russel said. "This program will give New Mexico small businesses, particularly in rural and economically disadvantaged communities, a tool to make this industry more accessible and help get their businesses off the ground."
According to a New Mexico Regulation and Licensing Department (NMRLD) press release, the $5-million "Cannabis Microbusiness Loan Program" will provide business loans of up to $250,000 for small-scale businesses, with the average loan being $100,000.
"There is a minimum 5 percent equity requirement, and the loans will be fully collateralized. Loan terms will go up to 5 years, and interest rates will vary from 2 to 3 percent," the release states.
"The Cannabis Control Division, throughout our ongoing open and transparent rulemaking process, has listened to and really heard concerns that it's hard for microbusinesses to access the capital needed to start a successful business," said Linda Trujillo, superintendent of the Regulation and Licensing Department, which houses the Cannabis Control Division. "This administration is committed to creating a thriving cannabis industry that incorporates New Mexico's values of social equity and fairness. We are grateful to be able to work with the New Mexico Finance Authority to put forward this loan program to make good on our commitment to social equity in this exciting new industry."
With adult-use cannabis sales beginning in the state no later than April 1, 2022, applications for the loan program will open Feb. 1, 2022, and will be reviewed monthly. The first loans are expected to be awarded by March.