New Mexico Creates $5M Loan Program To Help Small Cannabis Businesses Ahead Of Rec Sales Launch

Cannabis microbusinesses in the Land of Enchantment can now benefit from a newly introduced $5 million loan program, following approval earlier this week from the New Mexico Finance Authority Oversight Committee (NMFA).

The Cannabis Microbusiness Loan Program is designed to provide affordable lines of credit to licensed cannabis establishments, focusing on those operated by members of communities disproportionately impacted by previous cannabis law enforcement or located in rural communities, the NMFA announced.

The program will offer affordable loans to licensed cannabis establishments that demonstrate the technical and managerial capacity to operate but are unable to fund start-up costs due to their size, socio-economic or demographic characteristics.

“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,” said Marquita Russel, CEO of the New Mexico Finance Authority. “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.”

New Mexico will provide individual business loans of up to $250,000, with an expected average loan size of $100,000. In addition, interest rates will vary from 2% to 3%, while loan terms will extend for up to 5 years.

The application process is scheduled to open in February, with applications being accepted and reviewed on a monthly basis.

The first loans are expected to be made in March 2022, just on time for the launch of New Mexico's adult-use cannabis sales that are poised to kick off no later than April 2022.

Photo: Courtesy of Alexander Mils on Unsplash