Measure could deliver millions for investment in start-ups

SANTA FE – Gov. Michelle Lujan Grisham on Friday signed into law a measure that could deliver $200 million of new investment to New Mexico companies.

Senate Bill 136 allows the 11-member State Investment Council to raise the cap from 9 to 11 percent on investments from the Severance Tax Permanent Fund into the New Mexico Private Equity Investment Program if it finds prudent opportunities.

The program targets New Mexico startup companies with the potential for fast growth and job creation. It has already invested in 73 companies with 1,172 total employees and a combined annual payroll of $96 million. These companies spend $42 million a year on New Mexico goods and services, according to an SIC report.

“Helping home-grown startups is a key to building wealth and diversifying New Mexico’s economy with high-tech, higher-paying jobs,” Gov. Lujan Grisham said. “This is another tool in the toolbox as we work to support New Mexico entrepreneurs who have good ideas and want a clear path forward to create more jobs right here in New Mexico.

“This measure should also help attract investment partners and expertise from outside the state by showing that New Mexico is committed to responsibly investing our own capital in homegrown technologies, businesses and entrepreneurs,” the governor said.

The bill, sponsored by Sen. Pete Campos, passed the House of Representatives 66-1 and the Senate 30-9.

The dollars are deployed from the Severance Tax Permanent Fund, which had a balance of $5.6 billion at the end of January. The bill has no impact on the larger Land Grant Permanent Fund.