New Mexico Smart Money


Created in 2005 and administered by the New Mexico Finance Authority (NMFA), the Smart Money initiative is a bank-participation loan program designed to provide lower-cost capital to existing companies, startups, and those firms relocating to New Mexico.

By sharing risk with local banks, Smart Money provides job-creating companies lower interest rates and/or gap financing to strengthen cash flows. Borrowers can use Smart Money to finance renewable energy, processing and marketing facilities, business and industrial acquisitions, real estate, refinancing, equipment, machinery and supplies, startup costs, and working capital.

Each Smart Money loan is independently underwritten by a Smart Partner Bank, which submits a loan-participation application with its borrower analysis to NMFA. NMFA may participate in up to 49 percent in a bank-originated loan, generally up to $2 million.

The New Mexico Legislature ultimately approves Smart Money loans. NMFA prioritizes opportunities and then, in partnership with the New Mexico Economic Development Department, submits a list of potential Smart Money projects to the Legislature.