The New Mexico Finance Authority put forward a proposal that opens a $5 million line of credit for cannabis microbusinesses in order to promote social and economic fairness in the cannabis industry, the Associated Press reports. Under the proposal, qualifying cannabis businesses are eligible for $250,000 loans from the state with up to a five-year repayment period.
The program is targeted at small cannabis firms who grow and sell 200 plants or less, a select market created last year when New Mexico passed legislation regulating adult-use cannabis. Despite the new adult-use cannabis law mandating improvements in social equity within the emerging industry, an 11-member legislative panel voted down the Finance Authorities suggestions in a 6-5 vote.
Marquita Russel, CEO of the New Mexico Finance Authority and author of early program rules, said loans are scarce for small cannabis businesses.