2025 BBER Study Update Shows Impressive Impacts of NMSBIC Programs

A new study by the University of New Mexico Bureau of Business and Economic Research (BBER) reports that the New Mexico Small Business Investment Corporation (NMSBIC) added $68 million in economic output to New Mexico’s economy and increased jobs, housing units, and tax revenues in the state in the two years ending June 30, 2024.

NMSBIC engaged BBER in 2017 to conduct a study of its impact on the State of New Mexico. In 2025, NMSBIC commissioned a follow-up study to examine a period after the 2019 pandemic and evaluate its evolved investment strategy that aims to meet the needs of small businesses and communities.

The update study focused on the 2023 and 2024 fiscal years, when NMSBIC continued to wind down private equity investments in its portfolio and increase loan opportunities — including construction loans to meet the critical need for affordable housing and schools.

The new study, released in December 2025, found that the NMSBIC’s lending program provided: 

• $68 million in economic output, which is the total market value of goods and services that go to final and intermediate consumption, which contributes to the state’s gross domestic product.
• $3.4 million in fiscal impact, which are contributions to state tax revenues (included in the $68 million in economic output).
• 411 new jobs in New Mexico.
• 560 housing units, including 493 renovated housing units and 67 new housing units.

Opportunity Cost Also Considered

The BBER study included a calculated and estimated opportunity cost for NMSBIC’s lending program. Opportunity cost is the potential return if assets had remained invested in the state’s severance tax permanent fund instead of being disbursed to NMSBIC. Results were compared to the 2017 study, and to the estimated opportunity costs for the state’s Job Training Incentive Program (JTIP) and Local Economic Development Program (LEDA) programs.

Opportunity Cost Per Job Created (Lending Program Assets)

NMSBIC’s opportunity cost per job increased in the 2025 impact study and was higher than comparable figures for JTIP and LEDA for a variety of reasons. However, the increase can primarily be attributed to NMSBIC’s timely response to market needs, including those brought about by the pandemic and an emerging housing crisis.

• During the COVID-19 pandemic, NMSBIC provided interest rates to lending partners below its traditional 2% interest rate. NMSBIC provided 0% – 0.50% rates to lending partners related to loans originated during the COVID-19 pandemic. As these lending partner loans are running off, the preferential interest rates are being phased out and are scheduled to be completely phased out in 2028, when NMSBIC’s opportunity cost per job is expected to decrease.
• Opportunity cost per job does not take into account housing units provided by NMSBIC’s lending program. Given NMSBIC’s expansion into providing funding for low-income housing, the opportunity cost per job does not reflect all of the benefits provided by NMSBIC.

Benefits and Costs 

Figure 46 in the 2025 BBER impact study provides an overview of the benefits and costs of NMSBIC’s program, as follows:

Russell Cummins, NMSBIC executive director/investment advisor, said,  “The report provides valuable insights into the benefits and costs of NMSBIC’s program and helps to inform our decisions going forward.”

Cummins noted that he and the NMSBIC Board of Directors appreciate the detailed work that went into the study. “We would like to thank Dr. Michael O’Donnell and Julian Baca at BBER for their work on the 2025 impact study,” he said.

The full 2017 and 2025 BBER reports can be downloaded at the following links:

• December 2025 Report: Impacts of the NM Small Business Investment Corporation on the New Mexico Economy
• March 2017 Report: Economic Impacts of the New Mexico Small Business Investment Corporation