New Markets Tax Credit Program
New Markets Tax Credit Program supports New Mexico businesses and development projects with financing for buildings, equipment, and working capital to create jobs in rural or low-income communities.
Funder: New Mexico Finance Authority
Due Dates: Quarterly competitive cycles (subject to available funding)
Funding Amounts: Main program: financing up to $7 million, terms up to 40 years | Small Loan Pool: $500,000–$4 million projects, interest-only terms up to seven years
Summary: Tax-credit-supported financing expands access to capital for New Mexico businesses and development projects in rural or low-income communities.
Key Information: Successful main-program applicants must secure a primary lender willing to leverage its loans through NMTC.
Description
The New Mexico Finance Authority (NMFA) administers this federal financing program through Finance New Mexico, LLC, its subsidiary Community Development Entity. Finance New Mexico combines private capital with proceeds from selling federal tax credits to provide below-market financing, flexible lending criteria, and the potential to convert portions of loans to equity. The program supports buildings, equipment, working capital, and development activities that increase job creation in rural or low-income communities.
The Small Loan Pool addresses financing gaps for small businesses and small-scale developments in low-income communities that have historically lacked access to credit. It supports real estate development, buildings and infrastructure, equipment, and working capital through flexible loans with higher-than-standard loan-to-value ratios.
