New Mexico creates loan program for cannabis microenterprises

The New Mexico Financial Authority’s Oversight Committee on Tuesday approved a $ 5 million loan program to help licensed cannabis microenterprises. The program is aimed specifically at business owners in communities disproportionately affected by the state’s previous cannabis law or located in rural communities.

Under the program, individual loans are capped at $ 250,000 and officials said the expected loan amount was $ 100,000. There is a 5% minimum equity requirement and the loans will be fully collateralized, the Regulatory and Licensing Department said in a press release, and loan terms will go up to five years with interest rates of up to five years. ‘interest varying from 2% to 3%.

Marquita Russel, CEO of the New Mexico Finance Authority, said the program will provide “access to capital to help even more New Mexicans take advantage of the economic opportunities created by the legalization of adult cannabis.”

“This program will give small businesses in New Mexico, especially in rural and economically disadvantaged communities, a tool to make this industry more accessible and help get their businesses off the ground. ” Russel in a press release

Linda Trujillo, superintendent of the Regulatory and Licensing Department, which houses the Cannabis Control Division, said the agency decided to make the loans available after officials “listened and actually heard concerns that he it is difficult for microenterprises to access the capital necessary to start a successful business. Business.”

“This administration is committed to creating a thriving cannabis industry that incorporates New Mexico’s values ​​of social equity and fairness,” she said in a statement. “We are grateful to be able to work with the New Mexico Finance Authority to offer this loan program to meet our commitment to social equity in this exciting new industry.”

The application system for the program is expected to be available by February 1 and applications will be accepted and reviewed on a monthly basis, the agency said, with the first loans expected to be available in March 2022.

Sales of adult cannabis are expected in the state no later than April 1, 2022.

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