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Collateral Support

In 2011, New Mexico was authorized to receive $13,168,350 from the US Department of Treasury as part of the State Small Business Credit Initiative provided through the Small Business Jobs Act of 2010. The Finance Authority administers these funds on behalf of the State through the Collateral Support Participation program.

Through the Collateral Support Participation program, the Finance Authority is able to partner directly with banks to provide capital to credit worthy businesses seeking to expand and create or retain jobs. Under this bank participation program, the Finance Authority is able to fund quickly and efficiently lower the interest rate paid by the business and mitigate the bank’s risk by purchasing a portion of the bank’s loan, often in a subordinated collateral position. The amount of the Finance Authority’s participation will vary based upon the location of the business, the term of the loan and the collateral position offered to the Finance Authority.

In order to qualify for Collateral Support Participation program funds, a small business must:

  1. Be located in New Mexico
  2. Use the loan proceeds for business purposes
  3. Be a non-profit corporation or a for-profit corporation, partnership, limited liability company or partnership, sole proprietorship, cooperative or other entity that is authorized to conduct business in the State of New Mexico
  4. Have 500 or fewer employees
  5. Meet the bank’s lending requirements with the exception of the deficient collateral, which is enhanced through the program

The application for this program is submitted by the bank on behalf of the business. In addition to the application form, the bank needs to provide the Finance Authority with the information it used to reach its decision to extend credit to the business (e.g., financial statements, appraisals, business plans, etc.). Applications recommended for funding will also need to submit an Economic Disclosure Statement which provides the Finance Authority with complete information about the ownership of the business.


For information or assistance with NMFA’s Collateral Support programs, please contact:

John Brooks, Director, Commercial Lending, (505) 992-9638, jbrooks@nmfa.net