ALBUQUERQUE — New Mexico Small Business Investment Corporation (NMSBIC) today announced that it is allocating $25 million to support small business development across the State of New Mexico.
In partnership with RBC Global Asset Management (RBC GAM), NMSBIC will invest $25 million in an impact investment strategy that seeks to positively support the creation of small business loans for entrepreneurs in underserved communities across New Mexico. The initiative aims to reduce wealth gaps and create small business development in areas that were severely impacted by market disruption related to the pandemic, and it follows the $45 million pandemic relief commitment NMSBIC made in 2020 to Community Development Financial Institution (CDFI) lenders that enabled low-interest small-business loans at the height of the pandemic.
“Small businesses are the backbone of the state’s economy, and this investment will help create new job opportunities in New Mexico’s small, rural, and underserved communities,” Joseph Badal said, president and chairman of New Mexico Small Business Investment Corporation. “Most new jobs in the state are generated by small businesses, and small firms represent the majority of business enterprises in New Mexico.”
With this partnership, RBC GAM will help source loans for small businesses who have a primary location and a majority of their employees in New Mexico. RBC GAM will buy the Small Business Administration (SBA)-guaranteed loans by working with local banks and other mission–driven lenders such as DreamSpring and along with RBC GAM’s national network of community-focused loan originators who can lend in New Mexico, including Lendistry and Capital Impact Partners. The loans will be made to New Mexico-based businesses and will be held in a separately managed account managed by RBC GAM.
“Small business owners often need additional capital to establish and grow businesses that provide services and jobs in their communities,” Ron Homer said, Chief Impact Investing Strategist at RBC GAM. “This investment is an important step in supporting small business development, delivering more services to the residents of New Mexico, and providing more job opportunities within the local economy.”
NMSBIC’s partnership with RBC GAM is an expansion of its previous initiatives to provide funding to small business lenders within New Mexico. NMSBIC will continue to provide low-interest funding directly to lenders in their network.
NMSBIC’s $25 million investment is the latest investment contributing to Local Impact Fixed Income Targeted Investment New Mexico (LIFT NM), an impact investing collaboration created by Groundworks New Mexico and the New Mexico Impact Investment Collaborative (NMIIC), with an aim of supporting community development in the state of New Mexico. LIFT NM allows investors to scale together their investment dollars for greater impact in specific New Mexico communities, and towards thematic goals that are important to their missions and values. These investments can support homeownership, job creation, small business growth, access to affordable rental housing, healthcare and other resources that support development in New Mexico.
“Small businesses across the state suffered major losses during the pandemic and are still recovering,” Tim Eichenberg said, State Treasurer of New Mexico, who is a permanent member of the NMSBIC Board. “New Mexico Small Business Investment Corporation’s commitment to small business development will support local economies that were hit hard by COVID-19, keeping money close to home and supporting neighborhoods and communities.”
About New Mexico Small Business Investment Corporation
The Small Business Investment Corporation, d.b.a. New Mexico Small Business Investment Corporation (NMSBIC), was created in 2001 under the New Mexico Small Business Investment Act, NMSA 1978 §§58-29-1 et. seq., to help create new job opportunities throughout the State of New Mexico. The NMSBIC does this by providing equity and debt capital to small businesses through its Lending Program and Equity Program. The NMSBIC is funded by an allocation from the Severance Tax Permanent Fund, pursuant to NMSA 1978 §7-27-5.15.
More than $110 million in investment funds has been made available to NMSBIC for use in its Lending and Equity Programs, directly benefiting the New Mexico small businesses that need capital for expansion or startup. More than 3,500 New Mexico businesses have received loans using NMSBIC funds. These investments have enabled New Mexico small businesses to finance expansion, create and retain jobs and increase the State’s economic livelihood.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) which includes RBC Global Asset Management Inc., RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited, RBC Global Asset Management (Asia) Limited, and BlueBay Asset Management LLP, which are separate, but affiliated subsidiaries of RBC.