A capital outlay bill quietly authorizes $10 million in favorable-term loans for child care operators—and fitness studios offering on-site child care may qualify.
Most gym and fitness studio owners in New Mexico don't realize that a capital outlay bill passed this year contains a provision that could directly affect their ability to finance child care services on their premises.
Senate Bill 240, titled Capital Outlay Projects, includes Section 45 (found on Page 104 of the bill), which establishes a $10 million revolving loan fund specifically for child care facility small businesses and nonprofits. For fitness studios that operate or plan to operate child care services—whether a nursery during classes, a full-time center, or an expanded facility—this fund represents a new financing option with terms typically more favorable than conventional commercial loans.
The New Mexico Finance Authority will administer the revolving loan fund. Small businesses and nonprofits operating or building child care facilities anywhere in the state can borrow from it to construct, expand, or improve their facilities. Because it's a revolving fund, repayments cycle back in, making capital available to future borrowers over time.
For fitness studios, this matters if you:
• Currently offer child care and want to expand or upgrade the space
• Are considering adding child care as a member amenity
• Operate a nonprofit fitness program with an attached child care component
• Plan to build a new facility with integrated child care services
The loan terms are designed to be more accessible than traditional bank financing, making it easier for smaller operators to fund improvements that might otherwise require large upfront capital or high-interest debt.
Owners need to understand the timeline. According to Section 2 of SB240, general fund appropriations for this loan fund are expendable during fiscal years 2027 through 2030. However, there's an important constraint: the authorization becomes void if not certified by the end of fiscal year 2028.
This means the fund must be formally certified and operational by June 30, 2028, or the authorization lapses. Once certified, the fund can continue operating through FY30 and beyond (as a revolving fund), but that initial certification window is firm.
For gym and studio owners considering child care financing, this creates a practical deadline. You'll want to monitor when the Finance Authority announces the fund's availability and begin preliminary conversations well before the FY28 certification deadline if you're planning to apply.
If your fitness studio currently offers or is considering child care services, it's worth:
• Contacting the New Mexico Finance Authority to confirm the fund's status and application timeline
• Documenting any expansion or improvement plans for your child care space
• Consulting with your accountant or business advisor about how favorable-term financing could improve your cash flow
• Staying alert for announcements from the state about fund availability and eligibility requirements
The provision is real, the capital is appropriated, and the timeline is fixed. The question for your business is whether child care facility financing fits your growth strategy.
Source: Senate Bill 240, Section 45, Page 104; Section 2 (fiscal year appropriations and certification requirements).