Faith &FUNDING in New Mexico

two decades of grassroots economic development “ I was very interested in poverty issues and was looking for an activity that would further the mission of my Congregation—to promote peace and justice. It was a way to do something that was more than just putting a band-aid on the problem. It was giving people a hand up instead of a handout.”

DEDICATED TO SISTER MARIE LUISA VASQUEZ Loan Fund Board Member, 1990-2010

On Sunday, May 25, 1986, Sr. Marie Luisa Vasquez of Why did she say “yes” in the first place? “I was very the Adrian Dominican Sisters was among thousands interested in poverty issues and was looking for an of New Mexicans—and an estimated 6.5 million Amer- activity that would further the mission of my Con- icans—who participated in “Hands Across America.” It gregation—to promote peace and justice,” she says was both a charitable benefit and a publicity cam- now. “It was a way to do something that was more paign, during which the participants held hands in a than just putting a band-aid on the problem. It was human chain across the United States, that raised $34 giving people a hand up instead of a handout.” million to fight hunger and homelessness and help those in poverty. The dramatic event was the spark And why did she stay on our Board for two decades? that ignited formation of The Loan Fund. Sr. Marie Luisa saw herself as a representative of the interests of the Adrian Dominican Sisters, who gave The New Mexico Conference of Churches applied for us our first donation and an early loan that was re- and received a grant from “Hands Across America” newed in subsequent years. However, she was also to form a committee to study how best to alleviate “very convinced in the vision of The Loan Fund; we poverty in our state. Sr. Marie Luisa, who was then always did what we said we were going to do. We’ve working as a pastoral assistant at Albuquerque’s given a lot of people a start in doing something for Church of the Risen Savior, served on that commit- themselves and others: they start a business, and tee. Its members traveled around New Mexico, con- then they hire employees.” sulting with a wide variety of people about the possibility of setting up a non-profit loan fund to help “We were becoming the truly public servant that we low-income people start a business, or become suc- were called to be.” cessful with an existing enterprise. We thank you, Sr. Marie Luisa, for your vision, your When it was clear that the idea was indeed feasible, steadfastness, your dedication and your guidance The Loan Fund was organized and Sr. Marie Luisa was over your two decades of service. You helped us among several committee members who were invited remain ever mindful that everything we do must serve to serve on our first Board of Directors. She remained the people that The Loan Fund was called to serve on our Board until she retired two decades later. in 1989. Among the many who have worked to improve life in New Mexico The Loan Fund is the was a group of dedicated people of faith associated with the New most experienced Mexico Conference of Churches. A special task force had been alternative lender in meeting regularly on economic disparities since 1987, when New New Mexico. We are Mexico was ranked Number One in poverty in the United States. a Small Business Administration micro Inspired by a vision of ending indigence in our state, they established lender and manage The Loan Fund—and several other non-profit organizations— Bernalillo County’s in 1989. $1 million Revolving

Loan Fund. Since Two decades later, we feel privileged to bring you a visual record of The Loan Fund’s impact over 20 years of lending, which acknowledges the rich and histori- 1989, we’ve helped cal presence we have had in shaping today’s New Mexico. hundreds of good

people learn, grow, As you view this information, you will very likely recognize friends, relatives, co- and succeed— workers or colleagues who have been impacted by our lending, or who have actu- ally worked with us to make New Mexico a better place. creating sustainable businesses and non-

How can we account for this remarkable record of sustainability? The answer is profits and thousands that these organizations—including The Loan Fund—have not strayed from their of jobs. We pride our- core missions. And based upon the current economic situation in this country, selves on the diversity our own mission has never been more important than it is today. of our clients—63% of Since the economic “tsunami” of 2007, which included a Wall Street melt-down, our loans have been denial of credit and steep reductions in return on investments, The Loan Fund to minority-owned has taken on a more prominent role of “financial doctor” and “economic shock ab- businesses and 47% sorber” for small businesses and non-profits in our state. Because our lending helps have been to women- create and preserve jobs for hard-working New Mexicans, we enhance the eco- nomic status of the communities in which our clients live. owned businesses. Our goal: diverse,

With a cumulative total over two decades of more than $43 million in loans to thriving communities small businesses and non-profits, and a loan repayment rate of 97.5%, we have throughout New helped create or preserve over 6,000 badly-needed jobs in New Mexico. We hope and expect to continue acting as the “public servant” that founding Board mem- Mexico, including ber Sister Marie Luisa Vasquez visualized in 1989. Indian country!

F. Leroy Pacheco James A. Byrd President & CEO Board Chair ORGANIZATIONS CREATED BY NEW MEXICO CONFERENCE OF CHURCHES IN 1989

The New Mexico Conference of Churches created several non-profit organizations in 1989, all of which were tasked to play varying roles in alleviating poverty in New Mexico. Remarkably, two decades later, all of these organizations are still in operation:

• NM Community Development Loan Fund – Alternative Lender

• Second Harvest – Food Bank NM Community Development Loan Fund • Habitat for Humanity – Affordable housing

• Encino Houses – Senior housing

Encino Houses • The Storehouse – Free food and clothing

• Samaritan Counseling Center – Faith-based counseling

THE LOAN FUND’S FIRST SIX LOANS IN 1990

Given the difficult economic conditions in New Mexico, it is also remarkable that five out of our six first clients are still in operation:

• Peacecraft, Albuquerque (still operating)

• Tierra Madre Organic Garden, Ojo Caliente

• Santa Fe Housing Authority (still operating)

• Working Classroom, Albuquerque (still operating)

• Women’s Housing Coalition, Albuquerque (still operating)

Tierra Madre Organic Garden Peacecraft • Tierra del Sol Housing Corp, Las Cruces (still operating)

Santa Fe Housing Authority

Women’s Housing Coalition Tierra del Sol Housing Corp Working Classroom 1990–1995 Albuquerque Southwest Creations Collaborative Empowering Women to End Poverty

One of The Loan Fund’s oldest con- Over time, SCC has added such tinuing clients, Southwest Creations services as on-site childcare, Eng- Collaborative is a not-for-profit con- lish, citizenship, computer and GED tract manufacturing business for classes, and healthcare support. A wholesale and retail customers. new program, Buena Fe, encour- Founder Susan Matteucci has an ages parents to become involved ambitious social mission for SCC: to with their children’s schools. end poverty for immigrant and low- income women and their families The Loan Fund has been a consis- Buena Fe program. Her daughters and create intergenerational wealth. tent partner, providing loans and became outstanding students; the Employees have opportunities to credit for expansion. With 25 em- oldest is in college, studying nuclear learn such marketable skills as ployees, SCC’s recent annual rev- engineering. sewing, embroidery, packaging and enues are $850,000. tile work—and receive better than a “Being here has changed my life living wage. Overall, about 200 fam- Flora “Flor” Lopez is a shining ex- 100%,” says Flor. “I always tell the ilies have benefited. ample of SCC success. Married with women who come to work here two daughters, she had excellent that they can learn new skills and accounting skills but knew very little learn that they are equal to men.” English and was employed in a job that didn’t pay the bills. At SCC, she “We would not exist if The Loan stayed connected to her children— Fund did not help support us,” cared for in the company’s day care Susan Matteucci says. “Anytime we center—until they were old enough needed money to grow, The Loan to start elementary school. Early on, Fund has stepped up to the plate. Flor became a department man- The Loan Fund really ‘puts its ager, acquiring valuable leadership money where its mouth is’ when it skills. Recently, she has assumed comes to lending for change and

Flor Lopez and Susan Matteucci new responsibilities to manage the working with non-profits.”

1987… The New Mexico Conference of Churches brings together a diverse group of individuals to discuss the serious issue of poverty in New Mexico. 1989… The New Mexico Community Development Loan Fund is incorporated, receives its first investment from the Adrian Dominican Sisters, and hires its first Executive Director. 1990… The first six loans are made; the very first one is given to Tierra Madre Organic Garden for $3,000. Capitalization reaches $350,000. 1991… St. Elizabeth’s Shelter receives The Loan Fund’s first loan to benefit the homeless. 1992… Farmer’s Home Administration awards a $291,000 grant for rural development. 1993… The Loan Fund hires its first full-time Loan Officer and the loan pool reaches $1 million. 1996–2000

Bernalillo County/South Valley Dr. Andru Ziwasimon Zeller (r) Rio Grande Community Development Corporation: The Voice of an Underserved Community

Based in Bernalillo County’s unin- In 2000, The Loan Fund granted When Make My Lunch outgrew the corporated South Valley, the non- RGCDC a $110,000 loan to purchase incubator in just under a year and profit Rio Grande CDC was created and renovate a 17-year-old building she realized that she needed a mo- in 1986 to articulate community con- for its headquarters. In 2005, when bile unit, Callie was referred to The cerns about the neglect of the area’s RGCDC moved its offices into the Loan Fund and we lent her $12,000 infrastructure, environment, and business incubator, Andru rented to purchase a truck. economic development. the space for his new non-profit medical clinic, Casa de Salud. The results? Make My Lunch is now part of a new venture, Curbside Cui- Because the clinic charges only $30 sine. Small, independent, mobile per office visit while providing ex- food vendors set up shop every cellent care, the patient load topped Wednesday behind a popular Asian 11,000 in 2010. The numbers are pro- market, offering their products to a jected to increase dramatically in broader public. “Buying the truck the years ahead; therefore Andru is was the best thing that could have leading a multi-year $900,000 cam- happened for my business,” Callie Julie Stephens and Tony Gallegos paign to enlarge the clinic at its cur- says. “The Loan Fund helped me Under the leadership of its present rent location. He is also fostering get to the next level.” and former executive directors, Tony new businesses by sub-leasing Gallegos and Julie Stephens, two space to other health practitioners. “We have a number of clients in major initiatives have brought health common with The Loan Fund,” Tony care to a medically uninsured popu- Callie Tolman’s fledgling catering Gallegos points out, “and we are lation and created a 15,000 sq-ft enterprise, Make My Lunch, received discussing ways to get even closer business incubator, the South Valley a boost from the business incuba- programmatically.” Economic Development Center. tor’s 3,500 sq-ft. commercial kit - These successes are linked to two chen, which has given dozens of entrepreneurs, Dr. Andru Ziwasimon start-up food entrepreneurs a cost- Zeller and Callie Tolman. effective way to test market their cooking skills and culinary creations.

Callie Tolman (l)

1993… The Loan Fund takes the lead in Albuquerque’s Pocket of Poverty Community Reinvestment Act Campaign. First Security and Norwest Banks commit $5.5 million for lending in low-income communities. 1994… A three-year grant from the Small Business Administration allows for the beginning of a pre-loan counseling program for small business. Loan capitalization exceeds $1.4 million. 1995… Internal Technical Assistance Department is established. A $600,000 Urban Development Action Grant from the City of Albuquerque for lending in the Pocket of Poverty area and $1 million in Program Related Investment funds from the Ford Foundation are received.

1996… A joint branch office with WESST is opened in Roswell. 1996–2000 Sunland Park Tierra Madre Land Trust: Affordable Straw-Bale Homes (& More) in a ‘Colonias’ Community Augustin and Ramona Ruiz

Three Catholic nuns working in 15,000. The federal government much of the labor. Tierra Madre now southern New Mexico envisioned designated it a colonias community boasts 38 homes. building a community with afford- because of its proximity to the U.S.- able, environmentally sustainable Mexico border, low income levels Retirees Augustin and Ramona Ruiz housing for low-income people. and wages, environmental prob- are two examples of how lives have When Sisters Joan Brown, Jean lems, and little access to affordable been changed at Tierra Madre. Miller and Jean Durel founded Tierra housing. When the couple first arrived, they Madre Land Trust in Sunland Park were coping with serious health with 18 local families in 1995, they Undeterred by such challenges, problems. Through a jobs program translated this vision into reality and Tierra Madre first leased 20 acres sponsored by Goodwill Industries, changed many people’s lives for from the New Mexico State Land Of- Augustin became the gardener and the better. fice. Sunland Park subsequently an- Ramona the maintenance person. nexed the property to provide ac- With renewed purpose, their health cess to its sewer and water systems. has dramatically improved. Residents constructed a 6,500 sq-ft. playground. In 1998, The Loan Fund What does the future hold? The Sis- converted a $500,000 low-interest ters have retired, and Executive Di- loan from Catholic Health Initiative rector Cece Rodriguez envisions into a line of credit, allowing Tierra Tierra Madre becoming a self-sus- Madre to build 30, 1,536 sq-ft. straw- taining enterprise—with residents bale homes (straw bales are the in- eventually taking over all manage- sulation of choice due to their very ment functions. The Loan Fund has high energy efficiency). consistently been a “good friend,” Cece says. “They have always sup- Tierra Madre, first wall. Construction costs then were ported us when we needed help— Across the Rio Grande from El Paso, $24,000 per unit ($70,000 cur- almost like the big brother looking Sunland Park has a population of rently) because residents contribute after the little brother.”

1996… $950,000 in loans are made to 39 clients. 1997… The first year in which total annual lending exceeds $1 million. 1998… A $300,000 grant from Hitachi Corp. funds the Rural Livelihoods Initiative, a partnership with the New Mexico Community Foundation. 1999… Capitalization surpasses $7.3 million. 2000… Total lending reaches almost $3 million. A listening session with Treasury Secretary, Lawrence Summers, and Housing and Urban Development Secretary, Andrew Cuomo, about barriers to lending in Native American communities, is hosted. The first decade of lending results in cumulative 367 loans made, totaling more than $10.3 million, which have helped to create or preserve 1,775 jobs in New Mexico. 2001–2005 Crownpoint Holtsoi Trucking: Success and Independence - One Mile at a Time

In 2003, Erwin Holtsoi was ready to forum. “Cathy sat with us and lis- early. When Erwin increased their start his own trucking business from tened carefully to what we needed,” income by making longer hauls of his home in Crownpoint, NM. Erwin Marilynn remembers. “I explained to lumber and rebar from Arizona, he qualified for the Navajo preference them that they would need a busi- realized he needed a more reliable contracts list to haul hay, corn, and ness plan and a reliable cash flow truck. potatoes for NAPI, Navajo Agricul- projection,” Cathy says. In 2007 we provided a second loan Marilynn, a Bu- to buy the needed vehicle. “I’ll never reau of Indian forget that day when I went with Affairs case- Erwin and Marilynn to the Peterbilt worker, had dealership so that they could take never before possession of their shiny red truck,” prepared such Cathy recalls. “The purchase made material. Nev- such a difference in their lives. They ertheless, she would no longer worry about Erwin went home breaking down on the road.” In 2011, and put to- we awarded a third loan to facilitate gether what buying a newer trailer for the truck. Erwin and Marilynn Holtsoi with Loan Fund Loan Officer Cathy Sorenson. Cathy calls tural Products Industry. All he “one of the more thorough loan The couple manages their business needed was a truck and trailer – but packages I’ve ever been given. They well and continues to be successful. how could the vehicles be financed? had a very clear vision of what they “They have such an outstanding wanted to do and how to get there.” work ethic, and have achieved a bal- Erwin and his wife, Marilynn, proud ance between business success and parents of two young children, In 2003 we awarded Erwin and Mar- taking care of family,” Cathy says. found the answer when they met ilynn their first loan to purchase a our Loan Officer, Cathy Sorenson, pre-owned truck and flatbed trailer “We never would have realized our at a local small-business lending to officially start their business. dream without The Loan Fund,” They paid the loan off six months Marilynn asserts.

2001… A satellite office is opened in Gallup. Native American initiatives begin. The Loan Fund, with $200,000, matches a $100,000 loan from Laguna Pueblo, to make its first loan to a Laguna Pueblo member-owned enterprise, Turquoise Lady, in Albuquerque’s Old Town. Technical Assistance services are expanded in southern New Mexico with Las Colonias Project and the Dream Team Initiative, a two-year pilot program providing T.A. to non-profits. 15 loans for over $558,000 are made to non-profits.

2002… The U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund invests $1 million with The Loan Fund. Bank of the West and Dakota Foundation become first-time investors. The Loan Fund makes 79 loans totaling more than $2.78 million. 2001–2005 Albuquerque Sawmill Community Land Trust: An Old Industrial Area Becomes an Attractive,

Affordable Neighborhood Judy Gallegos

Josie and Charlie Pflieger raised Since 1999, Sawmill CLT, in partner- with 62 rental units and 16 ground- their three grandchildren here. Re- ship with the City of Albuquerque, level commercial spaces. tiree Judy Gallegos found an active, has been transforming 27-acres of involved community here. “Here” is abandoned, damaged land, the Sawmill CLT’s relationships with res- the Sawmill neighborhood, a former grounds of a former lumber com- idents, neighbors, city government, industrial area north of Albu- pany, into Arbolera de Vida (Or- and with partner organizations and querque’s Old Town. Under the chard of Life), an inclusive, multi- funders have been critical to its suc- leadership of executive director generational community. It cur- cess. The Loan Fund has been an in- Debbie O’Malley, and her successor, rently boasts 85 homes of varying valuable partner since 1998, ex – former Loan Fund employee Connie sizes; two apartment complexes, tending over $1 million in financing Chavez, the non-profit Sawmill the Sawmill Lofts with 60 live/work for operating capital, land acquisi- units and Villa Nueva Senior Apart- tion and real estate projects. In ments with 46 units; and various 2007, Loan Fund staff participated community amenities, including a in the community’s one-day play- playground, dog park, and plaza. ground build with over 150 other Future plans include a one-acre volunteers. “Our relationship goes community garden and commercial beyond financing—it’s about a development projects. shared mission of self-reliance and community control,” Connie In 2004, with financing from The Chavez notes. Loan Fund, Sawmill CLT purchased a 7-acre property neighboring Ar- The Pfliegers and Judy Gallegos The Pflieger family bolera de Vida to further advance cherish their community. “We know Community Land Trust is develop- the area’s revitalization. Construc- each other pretty well,” Josie of- ing an impressive array of afford- tion on the first development phase fers. “It’s a safe place.” Judy sums able housing for low-and moderate- of Sawmill Village began in 2010 it all up, saying, “…there’s no other income families and supporting the with The Artisan at Sawmill Village, place like this.” growth of a vibrant community. a two-building, three-story complex

2003… The Loan Fund begins administering the Santa Fe Small Business Development Loan Fund. Artisan Entrepreneurship Workshop Technical Assistance series begins at the Navajo Co-op in Thoreau, NM (and runs for three years). Since 1990, cumulative lending exceeds $16.5 million. 2004… New Mexico Small Business Investment Corporation (NMSBIC) approves its first investment with The Loan Fund of $1.5 million in loan capital. U.S. Small Business Administration awards The Loan Fund a $150,000 grant to provide outreach and technical assistance to two rural, underserved areas: the Colonias region in Doña Ana County and Native American communities. Technical Assistance Department staff log 1,638 hours working with clients. Under contract with the City of Albuquerque, the staff creates financial literacy curriculums related to Individual Development Account (IDA) requirements for small business owners and consumers. The Loan Fund 2010 Financial Summary

STATEMENT OF FINANCIAL POSITION STATEMENT OF ACTIVITIES

ASSETS OPERATING SUPPORT AND REVENUE SUPPORT AND CONTRIBUTIONS Cash and Cash Equivalents $ 4,117,689 Restricted Cash 614,848 Unrestricted $ 14,850 Accounts Receivable 238 Grants 541,957 Grants and Contracts Receivable 211,924 Interest Receivable 51,470 Total Support and Contributions $ 556,807 Prepaid Expenses 6,684 Microenterprise Loans Receivable OPERATING REVENUE (Net of Loan Loss Allowance of $564,975) 10,734,534 Building and Equipment Lending Program Interest $ 790,022 (Net of Accumulated Depreciation of $159,155) 450,818 Other Lending Program Income 86,638 Total Assets $ 16,188,205 Investment Interest and Dividends 38,717 Other Revenue 2,732 LIABILITIES Loan Recovery 18,704

Accounts Payable $ 11,227 Total Operating Revenue $ 936,813 Accrued Payroll Liabilities 68,340 Total Operating Support and Revenue $ 1,493,620 Accrued Other Liabilities 1,508 Accrued Mission Partner Interest Payable 14,636 EXPENSES Deferred Revenue 376,000 Cash Held for Others 501,261 Program Services $ 912,275 Secured Debt 8,468,828 Fundraising 114,842 Notes Payable 4,600,885 Supporting Services 235,098 Total Liabilities $ 14,042,685 Total Operating Expenses $ 1,262,215 NET ASSETS Change in Net Assets from Operations $ 231,405 Unrestricted $ 2,018,092 Permanently Restricted 126,965

Total Net Assets $ 2,145,057 Total Liabilities and Net Assets $ 16,187,742

2010 SUPPORT AND REVENUE

58.7 % Lending Income 36.3% Grants 2.5% Investment Income 1.3% Loan Recovery 1.0% Contributions .2% Other Revenue The Loan Fund Financials: 2005–2010

2005 2010 Loans Outstanding $5,600,000 $11,500,000 Total Assets $10,700,000 $16,200,000 Loan Interest Income $400,245 $867,659 Total Income $1,094,015 $1,493,784 Total Operating Expenses $1,290,441 $1,262,379

FinancialFinancial Milestones Milestones Sustainability Rate*

100% $20,000,000$20,000,000 80% $15,000,000$15,000,000 60% $10,000,000$10,000,000 40% $5,000,000 $5,000,000 20%

$00 0% 2005 2010 2005 2010 2005 2006 2007 2008 2009 2010

Sustainability w / Investment Income Loans Outstanding Outstanding Total AssetsAssets Sustainability w / o Investment Income

*Sustainability Rate = (Loan Portfolio Income + Investment Income) / Total Operating Expenses Total Amount of Loans Booked vs. Net Writeoffs 2.5% (over two decades of lending)

TotalTTotalotal AmountAmoun tof ofof Loans Booked 97.5% LoansLoans BBookedooked NetNet WriteoffsWWriteorriteoffs

21 Year Milestones: • $43+ Million in Loans Made Since Inception • $10.8 Million in Loans Outstanding • $16.2 Million in Total Assets • 97.5% Loan Repayment Rate • 82% + Sustainability Rate • 6,000+ Jobs Created and Preserved • President & CEO of The Loan Fund, F. Leroy Pacheco, named: Small Business Administration Financial Services Champion for 2011 • Minority Business Development Agency National Access to Capital Award for 2011 2006–2010 Santa Fe Jalapeño’s Mexican Grill: Mama Lucia’s Legacy

As a boy, Raul Aboytes helped his to Santa Fe, married, began raising a tract a broad cross-section of the mother Lucia feed hungry cus- family, and decided to improve his community. Raul says his customers tomers in her late-night, one-room standard of living. Noticing that his appreciate both Mama Lucia’s restaurant in Querétaro, Mexico. Lit- fellow immigrants flocked to Mexi- recipes and the high-quality prod- tle did he realize he would carry can food carts stationed near the ucts he uses. He consistently strives Mama Lucia’s legacy to New Mexico. airport, Raul looked for start-up to improve his menu offerings, regu- funding for one of his own. Another larly traveling to Mexico to search Mexican family referred him to us for new ideas and recipes. in 2006. The restaurant and the food cart With our $15,000 loan, Raul pur- employ six people (Raul’s wife, chased a cart and started selling Janet, also assists him), and he is “something I really knew how to clearly proud of his accomplish- make and other people didn’t:” ments. “We pay taxes. It makes me tortas, a meat sandwich served on a feel good that we are doing some- crusty, oblong white sandwich roll. thing for the economy. I’ll never be rich, but I have things I never would Raul used Mama Lucia’s meat mari- have had.” He eventually hopes to nade recipes, the tortas began “sell- open a second food cart and an- ing like crazy,” and he had to enlist other restaurant. his cousin to help. Inspired to open a restaurant, he asked us again for as- Raul is grateful to The Loan Fund for sistance. Our second, $31,000 loan supporting his dream of financial in- in 2009 helped Raul pay off the first dependence. “We were broke when loan in full and launch Jalapeño’s. they gave us the loans, and we’ve Raul Aboytes paid them back. Without them, we Leaving home at age 18, Raul Two local newspapers published fa- wouldn’t be here.” worked in a variety of jobs, moved vorable reviews, which helped at-

2004… Participation in RUFES, an Aspen Institute program, which provides financial literacy training in rural communities, begins. 2005… The Loan Fund makes 77 loans totaling $2.1 million. Financial literacy training, with the Community Action Agency of Las Cruces, NM and small business training workshops, with Navajo Nation Rural Business Development Organizations, are offered. Three-year association with Empowerment Business Spirit, the Kellogg Foundation-funded outreach assistance program to small businesses in northern New Mexico, begins. 2006… The Loan Fund becomes the Fiscal Agent for the STEPS program, supporting urban entrepreneurship in underserved communities of Albuquerque. 2007… The official name is shortened to The Loan Fund. 2006–2010 Silver City Millie’s Center: Love and Care for the “Silver” Generation

84-year-old Margaret “Peg” Aker cess. Beginning with a handful of was in difficult straits after her hus- clients, she built a second, handi- band died in 2004: grieving and capped-accessible bathroom to ac- coping with diabetes, she was in- commodate 16 residents; and now creasingly unable to take care of accepts Medicaid patients and “re- herself, had no children, and her only spite” clients who come for the day. nearby relatives were an older sister and a niece. People are attracted by the warm environment where the residents Fortunately, Peg was referred to Mil- eat all their meals together, cele- lie’s Center, an assisted living facility brate holidays and birthdays as a in Silver City. Owned by retired Ari- group (along with their families), zona attorney and judge Carley and keep busy with a broad range of Preusch, Millie’s was named for the activities both inside the home and Carley Preusch and Peg Aker generous and charitable Madame of out in the community. a brothel who—ironically—had once loan for $56,000 allowed Carley to been married to Peg’s husband! Peg Aker’s life has certainly turned purchase half a city block next to around. “Carley’s great,” says Peg. Millie’s. “We were already using it as Carley had moved to the pictur- “She’s good to everybody here. I a garden and walkway. I want to esque mining town to be near her wouldn’t want to be anyplace else.” make a nice park for our residents.” son. A complex set of circumstances led her to purchase an assisted Carley has obtained two loans from Carley’s future plans include creat- living facility that was going out us. The first was for $177,000 to pay ing both a new assisted living facility of business. off an interest-only mortgage on the on the property and an independent property. “We had exhausted all living facility nearby, “so that people Carley knew nothing about the field local resources. The Loan Fund pro- can age in place.” We have no doubt initially, but has made Millie’s a suc- vided invaluable help.” Our second that she will realize her vision.

2007… A Memorandum of Understanding is signed to mentor and provide training for the founders of the Bik’eh Hozho loan program for Navajo-owned businesses in Tuba City, Arizona. The City of Santa Fe renews the contract with The Loan Fund to manage the Santa Fe Small Business Development Loan Fund. To date, 48 loans totaling over $850,000 are made, creating and retaining 169 jobs in the Santa Fe area. The New Mexico SBIC extends an additional $2 million in capital, bringing the total to $3.5 million for lending in New Mexico. 2008… Another $2 million from New Mexico SBIC is received, bringing their total commitment to over $5 million and making The Loan Fund their single largest alternative lending partner in the state. The Loan Fund’s articles, distributed by Finance New Mexico, are published in over 30 newspapers throughout the state and provide valuable free advice to entrepreneurs and small businesses on a variety of topics. The Loan Fund serves as co-host for the Opportunity Finance Network’s annual conference in Albuquerque. 2006–2010 Quemado Quemado Rito Convenience Store: Tommy Padilla Vital Services in an Isolated Rural Community

Tommy Padilla does not have a lot In recent years, however, Tommy lot, and installed an ATM machine. of time on his hands. He works full noticed that people were avoiding But he needed to make a substan- time for the state Livestock Board the interstates “due to the heavy tial additional investment to pur- and owns a 2,000-acre cattle ranch volume of truck traffic and high chase gas pumps and create a near Quemado (population 781). speeds. Our traffic counts now are well-stocked, spacious and attrac- But he saw an opportunity to pro- the same or a little more than when tive 3,000 sq-ft. convenience store. vide a needed service to the travel- I-40 was built.” He calculated that That’s when The Loan Fund became ing public. the growth in traffic meant a involved.

We awarded Tommy a $350,000 SBA 504 loan, which is specifically designed to help a business pur- chase buildings and equipment. It was one of the first (and very suc- cessful) 504 loans we made. Now employing five people, Quemado Rito grossed $1.8 million in its first 18 months of operation and serves Quemado is on Route 60 in rural greater demand for motorist serv- an average of 250-450 people each western New Mexico. For decades, ices. The nearest gas station with a day. The ATM machine alone re- the community supported five gas convenience store is 30 miles away. ceives 400-600 “hits” each month. stations and four restaurants, serv- ing travelers heading to and from With $150,000 of his own money, Tommy feels he’s made a positive Arizona and California. But after Tommy bought, cleared and impact. “People are feeling better east-west Interstates 10 and 40 cleaned an abandoned property about Quemado. But I didn’t do it were built in the 1960s, Quemado with an existing building, hooked up all by myself.” He credits his family experienced a slow decline. power, water and sewer lines, laid and The Loan Fund: “They take on down a cement pad for a parking riskier loans, including start-ups.”

2009… The Loan Fund makes 85 loans totaling almost $6.5 million. In partnership with the University of New Mexico’s Bureau of Business and Economic Research, a socio-economic market survey and measurement tool designed to address the business needs of micro-entrepreneurs in rural New Mexico is produced. Tool is made possible with $68,069 CDFI grant. A pilot project to test new technical assistance services and delivery models in northern New Mexico is developed under a U.S.D.A. Rural Business Grant. The 20-year anniversary celebration is held at the Albuquerque Museum, where the creation of the Sister Maria Luisa Fund is announced. New Mexico SBIC approves a $7.5 million line of credit. Five-year partnership with the agency has resulted in $13 million in cumulative loans to almost 300 businesses statewide. Since 1989, 1,000 loans are made throughout New Mexico totaling $34 million, with 5,188 jobs created or preserved. 2006–2010 Santa Fe YMCA of Central New Mexico: A Continuing Mission to Serve Famiies & Children

The YMCA was founded in 1844 to tivities and summer camps in four schools, while 46 kids (18 months to put the Christian principles of re- communities, including Santa Fe pre-kindergarten) are enrolled in the spect, honesty, caring and responsi- and Albuquerque. pre-school program. The “Y’” is al- bility into practice, while working to ready considering more expansion. strengthen the spirit, mind and body In recent years, the Santa Fe branch of its members. Over time, its pro- had been sharing space with an- The staff of 14 works with the grams have expanded steadily to other non-profit, providing essential youngsters in an environment filled meet social and community needs. after-school child care services in with books, toys, games and com- Today, it is the largest provider of three elementary schools. As the puters. Children are encouraged to child care services in the U.S.—and needs of the community grew, the spend as much time outside as pos- in our state—and is open to people “Y’s” leaders realized that Santa Fe sible to develop outdoor playing of all faiths. needed a separate physical space. skills. Parents are integrated into Starting with $110,000 their children’s learning experiences. of their own funds, in 2009 they asked The Finances are never a barrier to par- Loan Fund for an addi- ticipation. “Unlike other day care tional $580,000 for providers, we provide financial sup- capacity building: to port, up to 50 percent of day care purchase and furnish a fees,” Executive Director Doug new 5,000 sq-ft. pre- Nakashima says. school. Santa Fe families are clearly the After the school beneficiaries. “We could not have The YMCA of Central New Mexico opened, the demand for children’s done this without The Loan Fund opened in 1915. In addition to child services increased. Currently, about and their belief in the YMCA and care, it offers extensive programs in 91 young sters are participating in our mission,” Doug adds. sports, health and fitness, family ac- the after-school program in five

2010… Since 1990, over 1,300 loans are made throughout New Mexico totaling more than $41.5 million, with 6,000 jobs created or preserved. Loan portfolio tops $11 million, and cumulative lending reaches $41.5 million. The Loan Fund becomes the Small Business Administration’s newest micro-lender in New Mexico, receiving a first-ever $750,000 CDFI special award to increase lending to small business. The Loan Fund begins managing Bernalillo County’s $1 million Revolving Loan Fund, created with $500,000 contributions both from the County and from The Loan Fund. The Loan Fund begins making SBA 504 loans to small businesses so that they may purchase fixed assets, such as real estate or equipment. 2011… Cumulative lending exceeds $43 million. Mission Partners 1989–2011

We are grateful to the many foundations, government agencies, banks, faith-based organizations and individual donors that have invested in our organization. Their generosity has provided us with fund- ing for lending and credit over the past two decades. We could not have exceeded a cumulative loan total of $43 million without their continuing faith in us and our work.

-A- Linda Berkel Century Bank Annie Abbott Bernalillo County Arcie Chapa/KNME David Abeyta Ann Beyke Charitable Gift Fund Adobe Doors & Cabinets Richard Bianchi Robert S. Chavez Adorers of the Blood of Christ Paul L. & Ellen Biderman Sonya K. Chavez Adrian Dominican Sisters Faye Blake Robert & Teresa Chavez The AKUA Group The Blossom Fund Chavez-Grieves City of Albuquerque Jane S. Blume/ Consulting Engineers, Inc. Albuquerque Economic Desert Sky Communications Sr. Irene Chrusciel, O.P. Development, Inc. Mr. & Mrs. William Bonds Citibank Algo Nativo Farm Boston Community Foundation William T. Clarke, Jr. David Allen Jane Bradley Robin Collier Allstate Foundation Michelle Breitner & Los Ojos Handweavers Donna Altschuler Dr. Harold & Norma Brown Communities at Work Fund American Indian John R. Brown Commty. Fdn. of Greater New Haven Chamber of Commerce of NM John & Carol Brown Community Reinvestment Fund America’s Car Donation Sam & Marilyn Brownstein Concilio Campesino del Sudoeste Charities Center Doreen F. Bunting Cong. of the Humility of Mary Archdiocese of Santa Fe Doret Burnett & Meridyth Pettis Kathleen Connors & Chuck Dowdy AMREP Southwest, Inc. J.B. Hunt Burress Mary & Tom Cooley Susan Andreini S. Buttery & G. Sheff Angela Cornell Alan & Nora Andrew James Byrd Corp. for Enterprise Development Joan Archibeque Margaret Covert & Brian Eberman Bonnie Arias CR Alternative Trust -C- Bradford Armstrong & Julie Dolin Michael Croom Aspen Institute Darien Cabral John & Wardene Crowley Assn. for Enterprise Development Calvert Funds Anasha and Rolalinda Cummings Atkinson & Co., Ltd. Candelaria & Associates Pam Carpenter -D- -B- Bruno & Jo Ann Carrar Phil Dahl-Bredine Sam & Ethel Ballen–La Fonda Hotel John Carter The Dakota Foundation Bank of Albuquerque Karyn Castillo Luci Dawson Bank of America Catholic Campaign Norman Dawson for Human Development Bank of America Foundation Diocese of Las Cruces Catholic Healthcare West Bank of the West Dominican Sisters of Springfield Catholic Health Initiatives Banyan Tree International NM Sanjiv Doreswamy Catholic Society of Religious Rob Downey Basilian Fathers of Toronto and Literary Education Dr. Inkin’stein Gail Zander Barlow Catalysts for Change DSRM National Bank Max & Sandra Bartlett Center for Action and Contemplation Teresa A. Dubuque Steve Becerra Central & Northern NM Greg Bemis, Jr. & Ellen Bemis Combined Federal Campaign Kat Duff -E- Ghost Ranch Conference Center Edith D. Homans Family Trust W. Sterling & Ann Dudley Edwards Ann Willis Glickman Investment Management Enchantment Land Certified Raymond & Patsy Goddy Home Education Livelihood Program Development Corporation Stephen Goldin, Mary Kay Hopkins Escuela del Sol Montessori School Institute for Regional Education Justin Horwitz Donna Estes Donald & Lorraine Goldman Henry and Bonney Hughes Evangelical Lutheran Church in America Joe Gonzales Sister Eileen Hussey, O.P. Robert Gorham II -F- Madeline Gotkowitz -I- Fannie Mae Foundation Helen Grace Immaculate Heart of Mary Sisters Farmers Home Administration Mary Grana Tova Indritz Norman Feldman Grand Rapids Dominican Sisters Intel Corporation Edna L. Fields Greater ABQ Housing Partnership Claudia Isaac First Financial Robert Griego First National Bank in Albuquerque Rod & Judith Groves -J- First National Bank of Santa Fe Guggenheim Foundation Sr. Eileen Jaramillo First Security Bank E. Gurule Florence Jenks/Flo’s Delicious Food Deidre M. Firth Jose Elevi Gurule Jewish Community Council Edward Fitzgerald of Northern New Mexico Mary J. Fitzgerald -H- Jewish Community Foundation Tom and Anne Fitzpatrick Hanging Arrow Arts & Crafts Jane Jodeit Russell Foddrill Thomasina & Dane Hannum Ben & Rolanda Johnson The Ford Foundation Allegra A. Hanson Retta Johnson Valerie & Wallace Ford Leo & Cynthia Harris -K- Franciscan Sisters of Mary Haymark Peoples Fund Lynn S. Freeman Hearst Foundation Karuna Trust Alexandra Freidus Richard Albert Heartman Mark Katzman Jeanne Frey Victorea Heartman & Spirit Players Carol & Edwin Kemp Peter Froning David Henkel Keshet Dance Company The Frost Foundation, Ltd. F.B. Heron Foundation Carla Kleefeld Veronica Frost Dolores Herrera, San Jose Community Dan Koleski Funders Collaborative Awareness Council Paul & Ruth Kovnat Funding Exchange Endowment James Herrera -L- Funding Exchange Pooled Fund Adrian Hesselden Thomas R. Funk/ David Hicks Suzanne LaFetra Gallup Artificial Limb & Brace Co. Kay Hicks La Frontera Mission Group Kate Hildebrand & Ric Richardson Laguna Pueblo -G- Hugh Hinojosa Linda Larson Vangie & Herman Gabaldon Ronald W. Hinson Mark Lautman Gadfly Trust Hispanics in Philanthropy Marta Jo Lawrence Trust Sr. Bernice Garcia Hitachi Corporation National Council of La Raza Bill Garcia The Hitachi Foundation Joan and John Leahigh Connie Z. Garcia Art Holyan Antonio Ledeyma Shae Garwood and Ethan Blue Dee Homans The LEF Foundation Sarah Crowley Geisler Helenty Homans Denise Lekowski Max Gethner Rick Homans Bruce & Elisheva Levin Mission Partners 1989–2011 continued

Marcia Levine Joseph R. Montoya CoYoTe Phoenix Pranava Levine Jose A. Moreno John Picaro Max and Anna Levinson Foundation Derry Moritz & Charles Shepard Mark Pinsky Levi Strauss Foundation Win Mott Tom Plunkett Linda L. Lillow/Triple L, Ink Virginia Mudd Sandra Polishuk Ann Lockhart & Edward Crocker Anna Muller, NEDA Business Consultants Presbyterian Church (U.S.A.) Foundation Logic Dreams Productions Merry Muraskin Presbyterian Synod of the Southwest London Frontier Theatre Company Project Share, Inc. Mildred Lopez -N- David & Nancy Provost Loretto Literacy & Benevolent Institution National Association of PNM Wolcott & Coolidge Loring Community Development Loan Funds Dan Puccetti Los Alamos National Bank National Community Capital Association Los Alamos National Council of the -Q- Churches of Christ in the USA National Laboratory Foundation Questa Petroleum, Inc. Marvin & Miquela Lozano National Rural Funders Collaborative NationsBank John Lucero -R- Stan Lucero NationsBank Community Development Corporation Carol Radosevich & the PNM Foundation Angie Ludi & Women’s Housing Coalition Needmor Fund Ramah Navajo Weavers Association Edward Lujan & the Manuel Lujan Agency New Farms Bishop Ricardo Ramirez N.M. Community College SBDC Floyd & Orma Ratliff -M- N.M. Community Foundation RDFC Mackie, Reid & Company, PA N.M. Conference of Churches Cassandra Reid James & Yvonne Maestas N.M. Housing Alliance Re-visioning New Mexico Patrick K. Malone N.M. Mortgage Finance Authority Lee Reynis & David Stryker Mr. & Mrs. S. Cooper Malone N.M. Small Business Alice Reynolds Chandra Manning Investment Corporation Randy Rice Frank V. & Kathleen M. Manning N.M. Women’s Foundation Teresa Richlee-Sachs/ Helen Manning Agnes Noonan New Mexico’s Own, Inc. Daniel Martinez Dr. Guillermina Nunez & Alan Wright Pam Riley & Mark Drexel Jake & Edna Martinez Cole Roberts Juan J. & Gabriela Martinez -O- Susan Shawn Roberts Trust J.V. & Cecelia Martinez Vickie Oldman Aida Rodriguez Victor & Judith Martinez Old Smokey Express Althea Rodriguez Matrix Capital Bank Debbie & Mike O’Malley Mary Teresa Rogers Susan Matteucci & Michael Loftin Eugene Ortega & HELP Harry Rogoff & Laurie Kauffman Marian Matthews Jerry Ortiz y Pino Grace Ann Rosile & David M. Boje McCune Charitable Foundation Russ & Sandra L. Osterman Patricia Ross Vickie McLellan Our Lady of Belen Church Charlotte Roybal Claudia Medina & Steve Schan Our Lady of Victory Missionary Sisters Shawn Rudd Member Resources Aubrey & Youvonnia Owen Ruth Alicia Ruiz Bess Metcalf Christopher Miles Rustay Miller Stratvert Law -P- Jean Miller, S.C. Ray Padilla, Jr. -S- Martha Miranda Payroll Company Joan R. Saks-Berman Carol Moldaw Sandra F. Penn David & Theresa Salazar Monarch Social Investment Louis Perez Sam’s Club Foundation Frank Sanchez Cathy and Duane Sorenson -V- Judi & Felix Sanchez South Valley SBDC Arlene Valdez Erin A. Sanders Southwest Creations Collaborative Norma & Dale Valdez Michael & Michelle Sandoval Southwestern Doors & Cabinets Friedje van Gils San Jose Awareness Council Southwest Presbyterian Church Janice Varela San Jose Parish Barbara & Jesse Spicer Sr. Maria Luisa Vasquez, O.P. Frank Sanchez SSM International Finance Vecinos Craft Shop Sandia Lab. Federal Credit Union Jonnie Breyer Stahl Fred Vega City of Santa Fe Bob Stark Connie Vigil Santa Fe Community Foundation Vivian Stark-Curry & Meuli Curry Leonard Vigil Santa Fe Nut Company E & H Stowell Trust fbo Alice Stowell Nick Vigil & Century Bank Barbara Sargent Kim Straus & Jack Lain Tomas C. & Betsy Vigil SBDC at Northern Louisa Strong NM Community College St. Paul Lutheran Church -W- Nan Schwanfelder Suitable Appearance Waco Target Team Vickie Scott-Grove The Synod of the Southwest (Clients of) Walden Asset Management Seton Enablement Fund Wal-Mart Marion Seymour -T- Tanis Walters Robert & Ann Shafer Penelope Tarasuk Wells Fargo Bank Laurence & Joan Shandler Temple Beth Shalom, Santa Fe William and Carol Weakhee Jane Shapiro Revolving Trust Sally-Alice & Don Thompson John Webster Alissa Shethar Threshold Foundation Douglas and Judith Weinstock Martha Sibert Tides Foundation-Exploring Elf Jonathan Weinstock Charles & Lisa Siegel Cheri Tillman WESST corp Sign Shop Susan Todd Jim West SIGRED Rocky & Nancy Todea Westminster Presbyterian Church, Gallup Myron Simmons Cyndy and Mike Topliff Andrew & Judy White, Jr. Marty Simon & Carol Oppenheimer J. Brian & Donna Trambley Theresa Whitedove Sisters of Charity David & Sarah Treeson Christian Willauer of the Blessed Virgin Mary Trillium Asset Management Cecelia & David Williams Sisters of Charity of the Incarnate Word, Houston Antonio y Lucinda Trujillo Marjorie J. Williams Sisters of Charity of St. Elizabeth Sr, Clarita Trujillo Linda Williamson Sisters of Loretto Max Turcios David Wilson/WAYA Research Sisters of Mercy Kathy Tyler Kathleen Winslow Sisters of the Presentation Jeanne & Rolf Winterfelt of the Blessed Virgin Mary -U- Nancy Meem Wirth Sisters of St. Dominic Serena Unger Aaron & Carolyn Wolf Sisters of St. Francis of Mary United South Broadway Corporation Woodlands Investment Sisters of St. Francis of Philadelphia United Way of New Mexico Management Group Cherie Skinner U.S. Bank An-Jean Wright Katherine Slick U.S. Department of Agriculture Jerry Small U.S. Dept. of the Treasury Barbara D. Smith Revolving Trust U.S. New Mexico Federal Credit Union Kenneth R. Smith Revolving Trust U.S. Small Business Administration Society of Mary, Province of St. Louis Barbara Somerfeld & John Guffey The Loan Fund 423 Iron SW / P.O. Box 705 Staff & Board Albuquerque, NM 87103 866-873-6746 Toll Free 505-243-3196 ph / 505-243-8803 fax www.loanfund.org

LOAN FUND BOARD MEMBERS James Byrd, Chair Community Bank of New Mexico, Albuquerque David Allen, Vice Chair New Mexico Bank & Trust Russell Foddrill, Secretary First American Bank Manny Ortiz, Treasurer Manny Ortiz Tax & Management Services Jane Bradley Independent Business Consultant John Buehler Risen Savior Parish Chad Cooper, MBA Prudential Financial Herb Crosby, Ph.D Avtec, Inc. Raul De Gouvea, Ph.D. Anderson School of Management Ida Fierro Town of Bernalillo Mary Herrera Former NM Secretary of State Loan Fund Staff David Hicks Front row, left to right: U.S. Bank, N.A. L. Joe Justice, Community Development Officer; Matt Loehman, Project Development; Justin Horwitz George Kenefic, Director of Enterprise Empowerment Rodey Law Firm Center: Anita Kelly, CPA, CFE F. Leroy Pacheco, President & CEO Clifton Gunderson LLP Next to last row, left to right: Cathy Sorenson, Community Development Officer; Norm Liss Melissa Toland, Data Management Specialist; Insurance Planners of New Mexico Jacqueline Pacheco, Intern/Administrative Assistant Last row, left to right: Chandra Manning Larissa Gonzales, Accountant; Miller Stratvert Law Firm Norma Valdez, Community Development Director; Theodore Pedro Mi Sun Jung, Administrative Assistant; American Indian Chamber of Sharon Wiedenhaupt, Controller Commerce NM

“Faith & Funding in New Mexico - two decades of grassroots economic development” production credits: Writing: Jane Blume, Desert Sky Communications Graphic Design: Linda L. Lillow, Triple L, Ink Graphic Design Photography: Jane Blume, Desert Sky Communications; Loan Fund staff photo:Albuquerque The Magazine/Liz Lopez; other photos courtesy of George Kenefic, Norma Valdez, and pictured Loan Fund client organizations. Graphs & Charts: Matt Loehman Printing: Valliant Enterprises, Inc. Cover photos of Loan Fund clients: Ruben Dorado, Dorado Bakery (top left); Tracy Kitts, Southwest Office Solutions (top center); Women’s Housing Coalition family (top right); Delia Gallegos, El Sarape Restaurant (bottom left); Paul Laur, Santa Fe Cider (bottom right).