State creates $ 5 million loan program for cannabis microenterprises – Los Alamos Reporter
PRESS RELEASE FROM THE REGULATION AND FINANCING DEPARTMENT
The New Mexico Financial Authority’s oversight committee on Tuesday approved a new $ 5 million loan program to help licensed cannabis micro-businesses, especially those operated by members of communities disproportionately affected by previous cannabis law applications or located in rural communities, to be successful.
“Through the Cannabis Microenterprise Loan Program, NMFA looks forward to providing access to capital to help even more New Mexicans take advantage of the economic opportunities created by the legalization of cannabis for adult use,” said Marquita Russel, Managing Director of New Mexico Finance. Authority. “This program will give small businesses in New Mexico, especially in rural and economically disadvantaged communities, a tool to make this industry more accessible and help get their businesses off the ground. “
The Cannabis Microbusiness Loan Program will provide affordable loans to licensed cannabis establishments that demonstrate the technical and managerial capacity to operate but are unable to finance start-up costs due to their size, socio-economic or demographic characteristics.
With $ 5 million spent on the program as a whole, individual loans will reach up to $ 250,000 with an average expected loan amount of $ 100,000. There is a minimum 5% equity requirement and the loans will be fully collateralized. The term of the loan will be up to 5 years and the interest rates will vary from 2 to 3%.
“The Cannabis Control Division, throughout our ongoing open and transparent rule-making process, has listened and really heard the concerns that it is difficult for microenterprises to access the capital necessary to start a business. prosperous, ”said Linda Trujillo, superintendent of the regulatory and licensing department. , which houses the Cannabis Control Division. “This administration is committed to creating a thriving cannabis industry that incorporates New Mexico’s values of social equity and fairness. We are grateful to be able to work with the New Mexico Finance Authority to deliver this loan program to fulfill our commitment to social equity in this exciting new industry.
The Cannabis Regulation Act, passed by the legislature earlier this year and enacted by Governor Michelle Lujan Grisham, legalized the sale of cannabis for adult use in New Mexico. The CRA included a social and economic equity mandate to promote and encourage full participation in the cannabis industry. The legislation is specifically aimed at uplifting communities that have been disproportionately affected by arrest rates through the enforcement of cannabis bans; rural communities likely to be impacted by cannabis production; and agricultural producers from economically disadvantaged communities.
Sales of adult cannabis will begin in New Mexico no later than April 1, 2022.
The application system for the Cannabis Microenterprise Loan Program is expected to be available by February 1 and applications will be accepted and reviewed on a monthly basis. The first loans should be