The bill for Public Banking HB 130 is scheduled for the House Commerce and Economic Development Committee at 1:30 on Wednesday, February 5, 2025.

Click here to see the schedule. Scroll down to the bottom of the page to see the members of this Committee.

Now is the time for our collective voices to be heard. Please contact your legislators, especially your Representative, and request their support for HB 130–Public Banking Bill and that it be heard in committees and acted upon by the full House.

Click here to if you want the name and contact information of your Representative.

 

Here are some talking points you may utilize to highlight the potential benefits of establishing a state public bank for New Mexico. A state-owned public bank would provide several advantages, including:

1. There are gaps in capital funding available to small business start up’s and expansions.  Especially for businesses of 1-50 employees and especially in rural areas, including tribal lands and pueblos.  Current funding for small business development is not meeting all needs and federal dollars especially could be reduced or become inconsistently distributed.  Among the groups reporting challenges in capital access are Outdoor Recreation, Creative and Healthcare Industries, farmers and ranchers, tribal and pueblo members.


2.
 A tool to address these needs is a state public bank, owned by the state and managed independently, working in partnership with community banks, credit unions and CDFI’s to provide equitable access to capital funds.

3. A $50 million fund generates $50 million in loans.  A bank creates money through credit.  A $50 million one-time investment (for capitalizing the bank) will make possible 8-10X that amount in loans, up to $500 million.  This is how we invest in New Mexicans.

4. The public bank would create partner loans with community banks and not compete with them,
 contrary to the message community banks are spreading again.  We need these loans since they are only lending 55-57% of their potential based on your deposits.  They are investing instead in the shadow markets to ensure maximum profits for shareholders, rather than developing community wealth through stronger local economic development.

  • Rick Clyburgh, North Dakota Banking Association President and CEOKSFR, Santa Fe Public Radio, The Forum, December 9, 2024, The Need and Feasibility of a State Public Bank.  “The state public bank supports more local control of financing.  It is built on trust of local institutions.  The BND does a lot of participation loans with community banks, averaging 50%.  ND has experienced no bank failures in 35 years.  The BND has helped to keep them liquid.  It’s (the BND) a wonderful tool, is not a competitor.  It is a partner with local banks in the communities.

5. Why are we so eager to place our state’s deposits in Wall Street banks?  Instead, let’s invest in New Mexico–and keep the money circulating within our state.

 

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