An interim legislative committee on Tuesday approved a state-run loan program for small cannabis businesses. The decision was approved by the New Mexico Finance Authority Oversight committee with a 9-2 vote.
The program will be overseen by the state’s finance authority and will be funded by the Economic Development Revolving Fund. According to a presentation from the authority’s CEO Marquita Russell, there will be about $5 million from the revolving fund made available for qualifying businesses. Each loan, Russell told lawmakers on Tuesday, would be limited to $250,000 and terms would be limited to five years.
Applicants to the loan program would need at least a conditional approval for a cannabis microbusiness from the state’s Regulation and Licensing Department with a business plan that shows three years of financial projections. Loan applicants would also need to put up money, property or equipment as a form of collateral.
Any loans of less than $100,000 or for a term less than three years would be charged two percent interest and loans more than $100,000 or for a term longer than three years will be charged three percent interest.
