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2002 was a breakthrough year that validated The Loan Fund’s model on a national level. The U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund awarded The Loan Fund a $1 million investment grant in 2002. This substantial capital injection (the first federal funding in the Loan Fund’s history) was a strong endorsement, effectively saying that New Mexico’s little loan fund had become a CDFI worthy of federal support. Private sector partners stepped up as well: in 2002 Bank of the West and the Dakota Foundation became first-time investors in The Loan Fund, joining the mission of lending to the underserved. With new funds to deploy, The Loan Fund’s lending hit new highs – that year it made 79 loans totaling over $2.78 million, more than doubling the dollar volume from just two years prior. These loans helped dozens of minority and women business owners launch or expand ventures across the state. What began as a church-sponsored idea was now a respected CDFI, blending public and private support to channel millions into New Mexico’s economic grassroots.

The Loan Fund

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