NMSBIC Returns $3.5 Million to Severance Tax Permanent Fund

The New Mexico Small Business Investment Corporation returned $3.5 million in net excess funds to New Mexico’s Severance Tax Permanent Fund in October 2025.

NMSBIC, a nonprofit corporation, was created in 2001 by state legislation. The profits it earns are returned at the end of each fiscal year to the state fund from which the money originated.

Joshua Smith

NMSBIC acts as a virtual company with no office and no employees. It leverages existing community resources, including Community Development Financial Institutions (CDFIs), to deliver funds and technical assistance to small businesses.

“NMSBIC’s efficient structure makes paying this kind of return possible,” said Russ Cummins, NMSBIC’s executive director and investment advisor.

Joshua Smith, NMSBIC president and board chair, said, “NMSBIC’s Board has been successful in implementing a strategy to achieve and maintain self-sufficiency
through expanding its lending program, with interest income from loans exceeding operating expenses, as evidenced by $3.7 million in operating income.” Smith’s comments can be seen in the 2025 Statutory Report he submitted to the New Mexico Legislature. 

Formed in 2021 and funded by an allocation from the Severance Tax Permanent Fund, the capital entrusted to NMSBIC aims to enhance the economic development objectives of the state, create job opportunities, and support small businesses in communities statewide. At the end of the 2025 fiscal year, NMSBIC’s outstanding loans reached $109 million, the highest point since its founding.

Since 2001, NMSBIC funds committed to nonprofit lending organizations have resulted in $277 million in loans to small businesses that supported 25,673 jobs in 32 of New Mexico’s 33 counties. Many of these businesses did not qualify for traditional loans. Chairman Smith noted that during the most recent twelve months, 60% of NMSBIC’s loans were made to minority-owned businesses, and 31% were made to women-owned businesses. 

NMSBIC’s lending partners include The Loan Fund, DreamSpring, Homewise, LiftFund, B:Side Capital, RCAC, Ventana Fund, Clearinghouse CDFI, Housing New Mexico, and WESST. Each lending partner organization has its own investment criteria, application process, and distribution system. Entrepreneurs and business owners seeking funding should visit FinanceNewMexico.org.