New Mexico Economic Development Department: Local Economic Assistance and Development Support
Through the Local Economic Assistance and Development Support program (LEADS), the New Mexico Economic Development Department (NMEDD) encourages and supports New Mexico communities in their efforts to create new jobs. The program emphasizes the importance of recruitment, as well as retention/expansion, and start-up activities. The initiative recognizes that the character and needs of each community will determine how these activities might be used to create new jobs. The funding provided is intended to create jobs, develop the tax base, and provide incentives for business development. Applicable terms are:
- Recruitment, retention, and expansion, or creation of jobs in economic-base businesses: An “economic-base business” is one that manufactures a product in New Mexico that has a market outside of the state. A business that provides a non-retail service with a minimum of 50% of its revenue coming from a customer base outside of New Mexico is also included (e.g., company in New Mexico providing services to clients throughout the U.S.). In rural communities that have included retail activity in their economic development plan, retail may be considered as an economic-base activity in that it brings new money into the community.
- Develop the tax base: More jobs in a community lead to more revenue for the community as employees spend money in local businesses. The businesses and the employees pay property and sales taxes. This will result in more money to enhance government-funded community services that contribute to the quality of life. Developing the tax base does not require increasing taxes; developing the tax base is about creating more assets on the tax rolls (e.g., new or improved business properties or more properties generating tax revenue) to spread the cost of operations across more entities.
- Encourage business development: Business growth involves providing advice, support, and resources to enable new businesses to start up, small businesses to grow, medium businesses to expand, large businesses to diversify and all businesses to succeed. Incubators, business accelerators, and shared work spaces help business get off the ground. Programs that provide network development, technology assistance, training, and marketing are used to encourage business development.
Proposed projects must address one of the core economic development areas of: Attraction, Retention, Real Estate, Technology and Entrepreneurial Development, or Workforce Development.
Amount: Projects may be awarded $5,000-$15,000 per year. Funding will be awarded through a cost reimbursement contract.
Eligibility: Entities that may apply to participate in LEADS:
- Are part of an economic development effort that includes both public and private participation and can demonstrate their capacity to facilitate economic growth
- Have an up-to-date community economic development plan and a marketing plan that supports business development and job growth
- The Local Economic Development Act, and, ideally, a Local Option Gross Receipts tax for economic development or other economic development financing tools have been adopted in the service area
Organizational status of applicants:
- Incorporated municipalities and counties, to include Native American tribal entities
- Community stakeholder organizations may apply if the organization is housed, operates, and is incorporated under the New Mexico Not-for-Profit Corporation Law and has been providing relevant economic development service to the community for at least one year prior to application (i.e., Economic Development Organization, Chamber of Commerce, workforce organization or business association)
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