Where: Zuni, McKinley County, New Mexico

Problem: Native communities lack access to capital to improve or expand economic development opportunities.

Solution: Rural Community Assistance Corporation’s (RCAC) Loan Fund provides financing for new business construction and a second business loan for equipment purchase.

Major Market is a registered New Mexico Corporation, owned by a husband and wife who are Zuni Tribe members. The Corporation seeks to open a deli/ convenience store near Zuni Pueblo, located in rural New Mexico about 150 miles west of Albuquerque. Zuni Pueblo has about 6,300 residents, most of whom are Tribal members.

With grocery shopping in the community limited to traditional convenience stores, the owners see an opportunity to provide fresh meat and produce as healthier alternatives to what is currently available. Family members, one of whom is a chef, will run the deli/convenience store. The owners plan to hire Tribal members for part-time positions as needed for cashier and other duties. In total, the project is expected to create six full-time and three part-time jobs.

Securing funding proved difficult for the owners, as local banks were reluctant to invest in Tribal businesses. RCAC’s Loan Fund provided a $544,000 business loan, partnering with Native Capital Access, a Bureau of Indian Affairs approved lender, to insure the loan. However, there was a long delay while the Bureau of Indian Affairs processed the guarantee. In the interim, the owners had an opportunity to purchase equipment for the store at auction but were paying high interest rates on a credit card. Based on the prior loan approval and relationship with the borrowers, RCAC’s Loan Fund provided an additional $52,250 bridge loan to help relieve the financial pressure.

Construction began on Major Market in September 2019, it will contribute to Zuni Pueblo’s economic vitality.