Case study: Divine Beauty

Every business needs funding to grow.  That could mean working to open new markets, investing in the development of products or services, or financing the development of buildings, new equipment or other infrastructure. We can identify the right financing options to help your business achieve new levels of success.

The financing products are separated into four categories, micro-loans, government guarantee loan programs, traditional bank financing and equity financing.

1) Micro-Lenders

Micro-Lenders are lenders that traditionally make loans from $300 – $200,000.  These lenders assist businesses that have trouble accessing capital.  Micro-Lenders also provide entrepreneurs with technical assistance so that other sources of financing can be easier to access.  The following micro-lenders are in the Santa Fe area.

The Santa Fe Small Business Development Loan Fund (SFSBDLF)

The SF Loan Fund provides loans, business training and consulting to entrepreneurs and small businesses that have difficulty in securing traditional commercial credit.  Loans can range from $5,000 – $100,000 and can be used for working capital, equipment, building purchase or renovation and land acquisition. Interest rates are from 6-8%.  The fees for the loans are 2% for loans up to $15,000 and 1% for loans larger than $15,000.  The loan terms are from 1-10 years. It will take approximately 1-3 weeks to process your request after a completed loan application is received.  The Loan Fund provides complimentary technical assistance to entrepreneurs or businesses receiving a loan.

LOAN CRITERIA – Preference will be given to companies who fit into one of the City of Santa Fe’s Economic Development Target Sectors  (Media, Technology, Green, Knowledge Based Enterprises and Arts & Culture).  Entrepreneurs or businesses who create jobs with wages of $16.00 or more and businesses who provide benefits to their employees are also preferred.. To qualify, entrepreneurs must be located within 20 miles of the City of Santa Fe City limits, have a reasonable credit history, provide acceptable collateral; demonstrate an ability to repay the loan and for every $25,000 in loans, entrepreneurs or businesses must create or retain one job.  Repayment terms are negotiated on a case-by-case basis.

c/o The Loan Fund
423 Iron Ave SW
PO Box 705
Albuquerque, NM 87103
Phone (505) 243-3196
E-mail: [email protected]


Accion is a microlender dedicated to assisting established and emerging entrepreneurs who face barriers to obtaining business credit in New Mexico.  ACCION offers loans from $200 to $150,000 and lines of credit from $35,000 to $150,000.  Loans can be used for equipment, inventory, marketing, working capital, tenant improvements and business related training. Often a client starts with a small loan, builds credit and works up to larger loan amounts.

LOAN CRITERIA – ACCION NM takes character, passion, credit, cash flow, and collateral into consideration and works to promote positive social and economic change.  Applicants are required to show a capacity to maintain monthly loan payments and must use loan funds for business purposes, which cannot include the sale of alcohol, the sale or manufacture of weapons, speculative investments or gambling operations. Accion’s loan process starts with an interview either in person by phone and includes verification of income as well as review of personal or business credit history,.

E-mail: [email protected]
ACCION New Mexico
20 First Plaza NW, Suite 417
Albuquerque, NM 87102
Phone: 505-243-8844
Toll-free:  800-508-7624
Fax:  505-243-2551

Tri-County Regional Revolving Loan Fund

The Tri-County Loan program is administered by the North Central New Mexico Economic Development District.  The Tri County Fund is for businesses in Los Alamos, Rio Arriba and Santa Fe Counties, impacted by layoffs at Los Alamos National Lab. Tri-County is a bank participation loan program and helps entrepreneurs by lending in partnership with a bank in order to reduce rates and develop long-term banking relationships.

LOAN CRITERIA – A business plan demonstrating market and financial feasibility and the necessity of Loan Fund assistance is required. Businesses should create and/or retain one job for each $25,000 of funds.  Information about use of loan funds and ability to repay must be detailed.  Participation of a banking partner and equity investment by owner or business is required.  Please contact North Central NM Economic Development District for an application.

Arturo Archuleta,
North Central NM Economic Development District
Po Box 5115
Santa Fe, NM 87502
Phone: 505-476-1019
Fax: 505-827-7414
[email protected]


A non-profit organization headquartered in Albuquerque, dedicated to facilitating the start-up and growth of women and minority-owned businesses in New Mexico through training and micro-lending programs.  It operates a revolving loan fund for businesses unable to obtain financing from traditional loan sources. WESST Corp’s loan program focuses on providing business consulting, training, technical assistance and other support services to loan recipients, in order to maximize their chances of success. WESST Corp provides one-on-one business services and workshops to entrepreneurs and businesses owners.  WESST Corp’s artisan and market link programs assist northern New Mexico artisans with a full range of business and product development services.

LOAN CRITERIA – Loans range from $200 to $10,000 for start-up businesses (in operation less than one year) and from $200 to $50,000 for existing businesses (in operation for more than one year).  Proceeds must be utilized for business development and/or expansion and not to refinance existing debt.  Recipients must work with a WESST consultant throughout the duration of the loan.  A viable business plan and capacity for repayment must be demonstrated.

Betty Bradbury
3900 Paseo del Sol
Suite #322A
Santa Fe, NM 87507
Phone: 505-988-5030
Fax: 505-998-4117

2) Government Guaranteed Loans

Government guarantee programs primarily consist of federal and state financing programs designed to provide capital for businesses.  These programs are meant to stimulate the economy and assist businesses with access to capital.  These loans are much larger than micro-loans and are targeted for capital development needs.

Small Business Administration

The SBA is an independent federal agency created to aid small businesses.  The SBA provides a number of loan programs and guarantees that make it easier for lenders to loan to small businesses.

LOAN CRITERIA – Requirements vary and may be subject to qualifications as defined by the financial institution participating in the transaction.  Basic requirements include financial statements and a business profile detailing income and competitiveness.  Specifics on how the loan will be used and what collateral will be provided are also required.

SBA District Director, John Woosley
625 Silver SW, Suite 320
Albuquerque, NM 87102
Phone: 505-248-8225
Fax: 505-248-8246

SBA 7(a)
This loan provides businesses with an 85% guarantee on loans up to $150,000 and a 75% guarantee on loans of $150,000 to $1.5 million. The loan will finance working capital, equipment, machinery, fixtures and real estate.

SBA 504
This is an “economic development financing program specifically designed to stimulate private sector investment in long-term fixed assets in order to increase productivity, create new jobs, and increase the local tax base”. This loan program provides expanding small businesses with 90% fixed asset financing to purchase real estate; make lease improvements; buy and install machinery, equipment and fixtures; and pay soft costs associated with the project.

SBA Export Working Capital Funds
This loan assists lenders responding to the needs of exporters seeking short-term working proceeds. It can be used to finance labor and materials for exporting, and purchasing or servicing manufacturing goods for export.

Enchantment Land Certified Development Company

ELCDC is a non-profit organization offering competitive long-term loans with low down payments to finance assets such as buildings, land and machinery. ELCDC assists entrepreneurs and business owners with packaging and processing of SBA-504 loans.  The SBA -504 programs provides businesses with long term, low down payment (10-20%), and fixed rates for fixed asset financing.  provides take out financing with government guaranteed debentures.  The federal government backs 40% of the loan and the lender provides the additional 50%.  Rates are determined when the debentures are sold But. are typically lower than market rates. Terms are from 10-20 years.

LOAN CRITERIA – Typical candidates are for profit businesses with a track record of growth, a net worth of less than $7 million and an average net income (after taxes) of less than $2.5 million.  New jobs must be created (in certain cases job retention is sufficient) as a result of financing.  One job for every $50,000 is the rule of thumb.  Projects with high community impact may also be considered.  Start-up businesses may be eligible under certain requirements including management experience, a strong business plan and an adequate amount of equity investment and operating capital.

Karen Howard, Executive Director
625 Silver SW, Suite 195
Albuquerque, NM 87102
Phone: 505-843-9232
Toll-free: 888-282-9232
Fax: 505-764-9153

Advanced Technology Program

ATP invests in long-term, high-risk research with the potential for large payoffs to American industry.  It provides cost shared funding for research and development projects.

Technology Innovation Program

Technology Innovation Program was established by the 2007 America COMPETES Act to support, promote, and accelerate innovation in the United States through high-risk, high-reward research in areas of critical national need.

LOAN CRITERIA – Projects focus on the technology needs of industry and operate with strict cost sharing rules.  Peer review is the primary basis for project selection and is based on the innovation, technical risk, potential economic benefits and strength of the commercialization plan.  Specific goals, completion dates and funding allocations are outlined at the outset.  Projects can be terminated for cause prior to completion.

Barbara Lambis
[email protected]
Phone: 301-975-4447
Fax: 301-869-1150

NIST Public Inquiries Unit
100 Bureau Drive, Stop 1070
Gaithersburg, MD  20899-1070
Phone:  301-975-6478

Smart Money

Smart Money is a New Mexico loan participation program administered by The New Mexico Finance Authority. NMFA provides bank participation loans, direct loans and loan guarantees to New Mexico businesses. The SMART Money loan program is designed to lower the cost for the borrower and share the risk with the bank. The borrower receives a fixed interest rate typically three to four percent below the bank’s rate on the NMFA portion of the loan.

Business owners or entrepreneurs can utilize Smart Money for the following types of business loans:  land, buildings, equipment, infrastructure and working capital  The Smart Money share of the loan will not exceed $2 million and no more than 49% of the total loan amount. Terms and interest are negotiated between the borrower and the bank. For every $50,000 borrowed, at least 1 job must be created.

Traci Davis
New Mexico Finance Authority
207 Shelby Street
Santa Fe, NM 87501
Phone: 505-984-1454
Fax: 505-992-9635
[email protected]

3) Commercial Banks

Santa Fe’s banking industry ranges from community banks with long established histories of serving Santa Fe businesses to national banks whose operations in Santa Fe, offer significant funding capability to local businesses.  Santa Fe’s community banks offer combine sophisticated financing combined with community- based decision making.

Century Bank
(505) 995-1200 100 S Federal Pl

Charter Bank
(505) 946-6555 208 Washington Ave

Community Bank
(505) 946-3500 549 S Guadalupe St

First Community Bank
(505) 992-8444 201 Washington Ave

First National Bank-Santa Fe
(505) 992-2000 62 Lincoln Ave

Los Alamos National Bank
(505) 954-5400 301 Griffin St

New Mexico Bank & Trust
(505) 946-2500 150 Washington Ave # 100

Bank of America
(505) 473-8605 101 Paseo De Peralta

Wells Fargo Bank
(800) 869-3557 241 Washington Ave

4) Equity Financing

Equity Financing is investment financing from two traditional sources: Venture Capital Investors and Angel Investors. Because equity capital is usually more risky, equity investors often require an ownership share of the business and the ability to exert influence on the business and its investments.  Good equity partners bring experience, contacts and energy to an enterprise. They should also be able to help entrepreneurs think through strategic decisions.

New Mexico Angels

Outstanding financial returns by investing in early-stage companies and accelerating them to market leadership. They work with the venture capital community and other angel groups in the Southwest.

CRITERIA – The NM Angels prefer to invest in technology-based companies where there is a viable exit strategy within seven years.  Non-tech companies are still considered.  Businesses are preferred that have revenue potential of at least $50 million after five years and that have a market advantage such as patents, trade secrets, copyrights etc.  They look for a valuation (pre-investment) that will produce at least a 10X return for the angel investors.

John Chavez, President
New Mexico Angels, Inc.
One Technology Center
1155 University Boulevard SE
Albuquerque, NM 87106
Phone: 505-843-4206

Coronado Ventures Forum

Brings potential venture capital investors together with targeted companies. Coronado Ventures connects private investors with businesses in need of early stage private equity financing.

Kevin Holsapple
Coronado Ventures Forum
190 Central Park Square
Los Alamos, NM 87544

tel: 505-662-0048
fax: 505-662-0099
email: [email protected]

Flywheel Ventures

Flywheel makes seed and early-stage investments in high technology ventures.  The fund targets investments of $100,000 to $1 million in new and emerging innovations and focuses on matching good management with innovative technologies and attractive market opportunities.  It also focuses on the region’s key economic drivers including software, telecommunications, semiconductors, clean technology and advanced materials.

CRITERIA – Flywheel looks for companies seeking their first funding for product development and the initial market strategy.  They also look for businesses that are redefining products and/or services in existing markets or have the potential to radically chance an industry.  Business models that have a clear and efficient path to profitability and/or shareholder liquidity are desired.


Santa Fe Office
341 East Alameda Street
Santa Fe, NM 87501-229
Phone: 800-750-7870
Fax: 800-750-7870

Mesa Capital Partners

Mesa Capital partners is an early stage private equity firm that invests in traditional high growth small businesses.  Mesa’s targets are in a variety of manufacturing and service sector industries. .  Companies typically have annual revenues under $3 million.  Investments generally range from $500,000 to $2 million.

CRITERIA – Businesses should have the possibility of growing rapidly into a leading position in their field.  The market should be at least $100 million.  Candidates should also have current revenues and a platform for a competitive advantage through patents, trade secrets, unique skills, key distribution channels etc. Plausible exit strategies with multiple exit partners are also considered.

Les Mathews
Mesa Capital Partners
1700 Paseo de Peralta
Suite A
Santa Fe, NM  87501
Phone: 505-428-2990
Fax: 505-984-9108
[email protected]

New Mexico Community Capital

Provides equity capital and business growth services to qualifying NM businesses, especially in under-invested areas; particular interests include light manufacturing, sustainable energy, and consumer products.

CRITERIA – NM Community Capital looks for businesses with at least five employees that have been in operation for at least two years and have sales of at least $500,000 for the past year. NMCCAP also looks for businesses committed to a superior workplace, a pattern of sustained revenue growth and a management team invested in the business and with demonstrated expertise.  Real estate deals and single location retailers are not targeted and gambling and liquor stores are prohibited.  Other considerations include the impact of the business on the community and job creation or retention.


J. Michael Schafer, Managing Director

PO Box 1302
Bernalillo, NM 87004
Phone: 505-924-2820
Toll-free: 866-222-1552
Fax: 505-213-0333
E-mail: [email protected]

New Mexico State Investment Council – Direct Equity Investments

The State Investment Council may make equity and /or debt investments directly in New Mexico businesses. The mechanism the SIC currently uses for direct investments is The New Mexico Co-Investment Partnership, a New Mexico private equity fund managed by Sun Mountain Capital. Sun Mountain is the fund’s general partner, while also acting as the SIC’s advisor for New Mexico private equity fund investments. The SIC’s direct investments in New Mexico companies may represent no more than 51% of the investment capital in a business and must be made in conjunction with one or more qualified co-investors.

CRITERIA – Any investment in a New Mexico business may not represent more than 51% of the investment capital and must be made in conjunction with one or more qualified co-investors.  Investments in qualified businesses range from $1 million to $20 million.

Direct Equity Investments
Sun Mountain Capital
301 Griffin Street
Santa Fe, New Mexico 87501
Phone: (505) 954-5474
[email protected]

Film Investments Section 7-27-5.26 NMSA 1978

The State Investment Officer may make investments in films produced in New Mexico upon approval of the State Investment Council.

CRITERIA: No more than fifteen million dollars ($15,000,000) may be invested in any one film project. Other requirements are that the project be wholly or substantially produced in New Mexico, have a distribution contract in place, post a completion bond and the majority of the production crew must be New Mexico residents. In the case of guaranteed no-interest loan investments, the guarantor must be a corporate entity with at least an investment grade credit rating from either Moody’s or Standard & Poor’s, an irrevocable letter of credit issued by a U.S. based bank with at least an A credit rating or another substantial and solvent entity that is acceptable to the State Investment Council.

Greg Kulka
New Mexico State Investment Council
2055 S. Pacheco, Suite 100
Santa Fe, NM 87505
Phone: 505-424-2500
Fax: 505-424-2510