City Changes Local Economic Development Act to Help Small and Medium Companies

Feb. 22, 2023

Today, City Council unanimously approved O-63, an amendment that will create easier access to the benefits of the Local Economic Development Act (LEDA) for small businesses that are making significant capital investments and creating new full-time jobs.

Current LEDA legislation requires a minimum of ten years to participate in project terms, making access to the funding unfeasible for some companies due to the costs required to provide collateral security for the ten-year term. The amendment allows City Council to approve LEDA projects for less than ten years under certain circumstances.

“We want to encourage company expansion within Albuquerque to create well-paying, homegrown jobs and career paths for our city,” said Max Gruner, Economic Development Department Director. “This amendment honors the intent of the original legislation without undermining the ten-year clause for large and relocation projects.”

“We’re breaking down barriers to support companies of all sizes in Albuquerque,” said Mayor Tim Keller. “This opens the doors to businesses that otherwise might not have had access to this opportunity to fund sustainable growth and job creation.”

Qualifying LEDA projects with a comprehensive Economic Impact Analysis (EIA) that demonstrates that the business can achieve payback in less than ten years, along with a recommendation from the City’s Economic Development Department director, can now be considered for a shorter term. Additionally, the project must also either:

• Leverage only State funds; or
• Total no more than $500,000 of either City funds only, or City and State funds combined; or
• Involve heritage companies that have a long tenure within Albuquerque, and would be unlikely to relocate to another state.

For more information on the City’s LEDA program and to see if your company may qualify for incentives, please visit cabq.gov/economicdevelopment or call 311.