Bill > HB28

This bill, titled the "Small Business Development Fund Act," establishes a new "small business development fund" as a governmental entity separate from the state to promote economic development by providing financial assistance to New Mexico businesses, particularly those in rural or underserved areas, or those focused on retaining, expanding, or attracting businesses. The fund will be managed by a seven-member "small business development fund board" appointed by the governor and the New Mexico legislative council, with members having expertise in banking and finance. The board has broad powers, including making and servicing loans, acquiring property, and entering into contracts, but the fund itself is not for profit and its revenues cannot benefit private individuals. Loans will be made in participation with "community banks" (federally insured New Mexico banks) for up to 49% of the project financing, with terms of up to 25 years for real estate and 10 years for personal property, and will require the community bank to process and service the loan. The bill also outlines provisions for conflicts of interest, requiring disclosure and prohibiting loans to board members or entities that have recently gifted funds to the development fund, and mandates annual audits and periodic examinations of the fund. Importantly, the "severance tax permanent fund," a state investment fund, may invest up to $100 million in the small business development fund, with a portion allocated for establishing the fund and the remainder for its loan program. The bill also addresses the confidentiality of customer information and limits the personal liability of board members and employees acting within their authority.