Formed in 1989, the New Mexico Community Development Loan Fund is a private, tax-exempt organization that provides loans, training and business consulting to entrepreneurs, business owners and non-profit organizations throughout the New Mexico and the entire Navajo Nation. Our services support the efforts of low-income individuals and their communities to achieve self-reliance and control over their economic destinies. The Loan Fund has successfully assisted hundreds of small business owners and non-profit organizations over the years.
Lending. The Loan Fund makes loans to:
- small businesses dedicated to bringing quality employment opportunities and/or needed services to economically disadvantaged communities;
- nonprofit organizations providing childcare, healthcare, education, training, art and social services in marginalized communities; and
- affordable housing developers that
construct and rehabilitate homes and shelters affordable to low-income families.
Technical Assistance: The services of the Loan Fund’s Technical Assistance Program are made available to all borrowers and selected potential borrowers at no charge. Often small business owners do not have experience in running their own businesses, or nonprofit clients need a little extra assistance in a particular area of nonprofit management. Technical assistance helps clients improve their skills and guides them toward ‘bankability’. The Loan Fund emphasizes individualized, one-on-one interaction with clients, and also provides group facilitation and workshops. Small business clients receive assistance in areas such as business planning, marketing, financial management and human resources. Nonprofit clients benefit from expertise in organizational development, board development, systems management, strategic planning, program planning and development.
Investments by individuals, as well as institutions such as Calvert Foundation, provide the lending capital to the Loan Fund.
The Loan Fund serves communities in the state of New Mexico. Forty-eight percent of those served are located in rural regions, while 52% live in minor urban areas. The ethnic diversity of current borrowers includes a population that is 61.8% Hispanic, 9% Native American, 2.5% African American, and 24.8% Caucasian. Women are 52% of the borrower population. Nearly all of Loan Fund clients (99%) have household incomes that are at or below 80% of the area’s median income. The Loan Fund serves businesses, community and nonprofit organizations, supporting the entrepreneurial spirit in New Mexico.
In 2004, the Loan Fund made 46 loans totaling $2,075,624 and the capitalization now stands at over $12 million. In 2004, the Loan Fund financed 13 small businesses, 23 micro-businesses, 5 community service organizations, and 4 affordable housing development organizations. Loans in 2004 helped create or preserve 264 jobs, 181 childcare and education slots and 1 affordable housing unit. Other impact measures include: increased business ownership in rural communities; opportunities for low-income people to achieve self-sufficiency; development or expansion of community facilities or renovation of affordable housing units; and improved financial and management skills.
Valley Dairy Products provides dairy owners with chemicals to clean and sanitize their milking equipment. Owned by Saul Ordońez and his wife, Loriann, the company has grown large enough to move the family into the economic mainstream and hire another employee.
It wouldn’t have been possible without the New Mexico Community Development Loan Fund, which approved Saul’s first line of credit after he was turned down for a bank loan. Now, this Mexican immigrant, who came to New Mexico for a better life, has a successful and growing business serving the dairy industry in southeastern New Mexico.