Local Economic Development Act (LEDA)

New Mexico's LEDA grant funds infrastructure to help local governments attract expanding businesses and create jobs across the state. Home Grants Local Economic Development Act (LEDA) Local Economic Development Act (LEDA) Under the Local Economic Development Act (LEDA) (5-10-1 to 5-10-13 NMSA 1978) the New Mexico Economic Development Department (EDD) is granted authority to administer grants to Local to assist expanding or relocating businesses that are Qualified Entities that will stimulate economic development and produce public benefits pursuant to LEDA. All grants are funded on a strictly reimbursement basis. EDD targets economic development projects that comply with all legal facets of LEDA. Additional consideration is given to project that demonstrate: Significant Community Impact and Support Rural and Underserved Areas of New Mexico Increased Wages and Job Creation Significant New Capital Investment Environmentally Sustainable Outcomes Implementation The Department has designed and implemented a systematic, transparent approach to prioritizing projects that meet the over-arching goals of EDD for financial evaluation and structuring. These goals provide guidance for funding on project impact qualifications, application review criteria, and concentration factors. Qualifying Entity Means a corporation, Limited Liability or other person that is one or a combination of two or more of the following: An industry for the manufacturing, processing or assembling of agricultural or manufactured products A commercial enterprise for or selling products of agriculture, mining or having been manufactured An “Economic Base Employer”, which is defined as an employer who is deemed eligible for in-plant training assistance by the Economic Development Department’s Job Training incentive Program (Section 21-19-7 NMSA 1978) Non-Qualifying Entities Any enterprise for the sale of goods or commodities at retail or for distribution to the public of or telephone or other services commonly classified as public utilities A business in which all or part of the activities of the business involves the supplying of services to the general public or to governmental agencies or to a specific industry or customer, but not including businesses primarily engaged in the sale of goods or commodities at retail Program Application Requirements Access to the on-line application portal is extended to a Qualified Entity after an initial review of program eligibility and includes: Demonstration of Financial Soundness and Readiness to Proceed A signed Release/Authorization Form, including certification that the Qualified Entity is current with all New Mexico and Federal obligations Project Scope of Work, including use of requested funds 3 years Financial Statements and/or Pro Forma, along with appropriate documentation (purchase agreements of land, loan approval, term sheets, infrastructure order, etc.) Funding Sources and uses Job creation and salary/benefit information Project Capital Investment Completed Economic Impact data sheet Department’s Role Determine eligibility prior to invitation to apply Determine appropriate LEDA project amount Conduct due diligence, including commercial credit check Review the application and approve when complete Determine project feasibility, including financial analysis Develop Project Terms Sheet which identifies: Security Interest that is equal to the approved Performance and “claw back” provisions; Expected Project job creation timeline; and Project Starting Head Count Community’s Role Will provide a letter requesting the funds and indicating support for the project and that the project com

An “Economic Base Employer”, which is defined as an employer who is deemed eligible for in-plant training assistance by the Economic Development Department’s Job Training incentive Program (Section 21-19-7 NMSA 1978) Non-Qualifying Entities