About this programme
The NM Collateral Assistance Program (CAP) 2.0 is a New Mexico Economic Development Department (EDD) initiative to widen small businesses' access to financing. It operates under the State Small Business Credit Initiative (SSBCI 2.0), a federal program created through the American Rescue Plan Act with $10 billion allocated nationally.
CAP works by having EDD pledge cash to cover collateral shortfalls on loans, encouraging banks and other lenders to finance small businesses in underserved markets that might not otherwise qualify.
How it works
EDD provides cash support of up to 50% of the loan principal for under-collateralized loans, based on qualifying criteria.
The borrower applies for a loan through a CAP-approved lender. If collateral assistance is needed, the lender requests CAP support from EDD.
Once EDD approves the request, the lender gets a commitment valid for up to 90 days. After the loan closes, EDD funds its contribution into a separate account for that loan, and the lender must notify EDD within 15 business days of closing.
Eligible uses include tangible asset purchases, construction, renovation or other business improvements, start-up costs, working capital, franchise fees, equipment and inventory, and bridge loans ahead of permanent financing.
Non-owner-occupied construction loans (industrial, commercial, residential, land development, farm) are capped at $500,000, with a maximum $250,000 in CAP support.
CAP cannot support SBA-guaranteed loans directly, though it can support a bridge loan that reduces loan-to-value until SBA 504 funding arrives, and it cannot fund goodwill in a business acquisition.
Who can apply
The business must be located in New Mexico, operate in a NAICS-listed industry, and qualify as a small business under U.S. SBA standards, employing 750 or fewer full-time equivalents.
Preference goes to women business owners, U.S. veterans, ethnic minorities, and other socially disadvantaged groups, plus businesses in rural areas and projects that generate income from outside the state.
Emphasis industries include intelligent manufacturing, sustainable and green industries, value-added agriculture, outdoor recreation, and film and media (in rural areas).
How to apply
- Apply for a loan through a CAP-approved lender, not directly with EDD.
- The lender determines whether collateral assistance is needed and submits a CAP 2.0 request to EDD on the borrower's behalf.
- EDD reviews and approves or denies the request, sending an approval valid for 90 days.
- The loan closes, EDD funds its contribution, and the lender submits final loan information to EDD within 15 business days of closing.
Documents you’ll typically need
- CAP 2.0 Application
- Federal W-9 Form
- Lender Participation Application (for lenders enrolling in the program)
Frequently asked
Can I apply for CAP directly?
No. You apply for a loan through a CAP-approved lender, and the lender requests CAP support from EDD on your behalf if it is needed.
How much collateral support can I get?
Cash support up to 50% of the loan principal for under-collateralized loans, based on qualifying criteria.
How big can my business be and still qualify?
You must qualify as a small business under U.S. SBA standards, meaning 750 or fewer full-time equivalent employees.
Can CAP support an SBA-guaranteed loan?
Not directly, but it can support a bridge loan that reduces loan-to-value while you wait for SBA 504 funding.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.