Local Economic Development Act (LEDA)

State of New Mexico 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 (NMEDD) is granted authority to administer grants to Local Governments (Municipality and/or County); to assist expanding or relocating businesses that are Qualified Entities that will stimulate economicdevelopment and produce public benefits pursuant to LEDA.  All grants are funded on a strictly reimbursement basis.

NMEDD 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 Under-served Areas of New Mexico
  • Increased Wages and Job Creation
  • Significant New Capital Investment; and
  • Environmentally Sustainable Outcomes.

Implementation
The Department has designed and implemented a systematic, transparent approach to prioritizing projects that meet the over-arching goals of NMEDD 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 Company, partnership, joint venture, syndicate, association 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 storing, warehousing, distributing or selling products of agriculture, mining or having been manufactured; or.
  • 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 electricity, gas, water 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; and
  • Completed Economic Impact data sheet.

For more information about tax credits, click here. For more info about LEDA, contact the City of Las Cruces Economic Development Department.