NM Collateral Assistance Program (CAP) 2.0

As part of the American Rescue Plan Act (ARPA), signed into law by President Biden in 2021, Congress has allocated $10 billion to increase small businesses access to equity and debt capital through the State Small Business Credit Initiative (SSBCI 2.0) program. Administered by the U.S. Department of Treasury, the funds are distributed to each state, territory, and Tribal jurisdiction. EDD is administering New Mexico’s SSBCI 2.0 allocation.

To support business growth in New Mexico and to create and retain jobs, EDD encourages banks and other financial institutions to make loans to small businesses in underserved markets. EDD can pledge cash to cover a collateral shortfall of a loan to enable financing that otherwise might not be available to a small business.

Eligible borrowers must meet these criteria:

Loan proceeds can be used toward the following:

Program Highlights:

Frequently Asked Questions:

 No. Collateral properties must be at least 51% owner occupied.

Yes and no. CAP can support loans for asset purchases but cannot be used to support loans to fund goodwill (the price paid for a company in excess of the business’s net asset value).

  • No. CAP cannot be used to support an SBA-guaranteed loan.
  • CAP can support a bridge loan to reduce the effective loan-to-value for an interim period until the SBA 504 can be funded and the CAP support released.


For more information about the program, please contact EDD CAP Manager and Financial Coordinator Sam Collins at

Enrolled Lenders:

Following is a list of actively enrolled lending institutions in the Collateral Assistance Program. The Program is not limited to these institutions, EDD is actively enrolling lenders and will update this list as more lenders are enrolled.

Lender Enrollment:

To enroll in the program as a lender, please fill out and submit the following documents to

Loan Application:

On a per project basis the following application will need to be filled out and submitted by the lender. Please note: applications must be submitted by the lender.

Loan Enrollment Application Example