Reduced-Cost Financing Available for Local Real Estate Projects Intended to Create or Expand Economic Development Opportunities

The funds must be used to create or expand economic development opportunities within the state.

February 8, 2024
Source: New Mexico Finance Authority

Application now open. The application round will close March 1, 2024.

Created by the Opportunity Enterprise Act in 2022, the Opportunity Enterprise Revolving Fund is a loan program that provides financing for building or renovation projects to increase the inventory of commercial space that will attract businesses to New Mexico, allow existing businesses to expand their operations, and achieve economic benefits for the state.

The OERF application consists of three parts:

Part 1 determines eligibility for financing;

Part 2 is the project application, which is scored and prioritized based on specific criteria in the OERB Evaluation and Prioritization Policy: and

Part 3 is a loan application that is reviewed for financial soundness and ability to repay the loan. Only businesses whose applications score high enough to be prioritized by the OE Review Board will be invited to submit a loan application.

Before you apply, please review the “Resources” section at the right. In particular, we recommend you review the scoring matrix in the OERB Evaluation and Prioritization Policy to determine if your project application would be competitive.

All information provided in Parts 1 and 2 should be considered public information and subject to the Inspection of Public Records Act.

Questions? We’re happy to help. Please call (505) 992-9687 or email OERF@nmfa.net.

Application

Application now open. Application must be submitted by March 1, 2024

Log into your existing NMFA account or request access to create an account for the OERF.

Not yet ready to apply, but interested in the program?

Please click here to provide NMFA with information about your business and your interest.

Eligibility

Both for-profit and nonprofit entities are eligible to apply.

Business types include the following:

domestic corporation
general partnership
limited liability company
limited partnership
public benefit corporation
nonprofit entity
other private business entity or combination of entities

Businesses need to be engaged in a project that increases the inventory of commercial space in New Mexico, while creating or expanding economic opportunity in the state.

Applicants must provide sufficient evidence that other means of financing their project are unavailable or insufficient.

Information

Following is information that may be helpful for potential applicants, but is not a list of all the requirements.

Loan Terms

The interest rate will be equal to 60% of the Wall Street Journalprime rate on the date the loan is approved, but will be no less than 3%. The interest rate is fixed for the term of the loan.
The loan term will be between fifteen and thirty years.
Interest-only payments will be due the first three years.
After the third year, principal and interest payments will be due monthly.
The loan may be paid off in advance with no pre-payment penalty.

Loan Amount

Loan amounts are not to exceed $17,500,000.

Use of Loan Funds

Loan funds may be used for purchasing, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining land, buildings or infrastructure.

The funds must be used to create or expand economic development opportunities within the state.

Visit the New Mexico Finance Authority Website to Learn More.

Article posted by:

Levi Gwaltney

Levi Gwaltney is the Editor In Chief of Las Cruces Digest. The Editor makes editorial and posting decisions regarding content published on this site. In most cases, the Editor makes little if any contribution to content published, and takes no credit for the content of republished posts. If available, the source or author of posts is provided at the top of the article.