A capital outlay bill signed into law includes a $10 million revolving loan fund for child care facility operators—and it may affect how fitness studios think about on-site child care.
Most gym and fitness studio owners in New Mexico don't realize that SB240, a capital outlay bill focused on state infrastructure projects, contains a provision that could reshape how child care services work in their industry.
Buried on page 104 of the bill, Section 45 establishes a $10 million revolving loan fund specifically for small-business child care facility operators. Here's what that means in plain terms: the New Mexico Finance Authority will administer a pool of capital from which child care operators can borrow money to construct, expand, or improve their facilities.
If you operate a gym or fitness studio and have considered adding on-site child care—or if you're a standalone child care operator looking to grow—this fund is designed for you. The loans are available to small businesses in the child care sector, making it a direct source of capital that didn't exist before.
Unlike traditional bank loans, which often require extensive collateral and lengthy approval processes, a revolving loan fund is structured to cycle capital back into the community. When borrowers repay loans, that money becomes available for the next round of applicants, keeping the fund active and accessible over time.
The fund covers three specific uses: construction of new child care facilities, expansion of existing ones, or improvements to current facilities. This could mean anything from building a dedicated child care space in your gym to upgrading safety features, adding capacity, or modernizing equipment and infrastructure at a standalone child care business.
The general fund appropriations for this loan fund are made in fiscal year 2027 (FY27), according to Section 2 of SB240. That means the fund should be operational and available for applications starting in that fiscal year. One important detail: unexpended balances revert according to Section 2, so funds not used in a given period return to the state—making it important to track application deadlines once the fund launches.
Child care remains a significant barrier to gym membership and employee retention in the fitness industry. Many studios have wanted to offer on-site child care but lacked affordable financing options. This revolving loan fund removes one major obstacle by providing below-market or favorable-rate capital specifically for this purpose.
For fitness studios considering child care as a membership amenity or revenue stream, this is worth monitoring. For child care operators looking to expand, it represents a new avenue for growth capital that's specifically designed for your sector.
The key is staying informed about application requirements and timelines once FY27 begins. Details about how to apply, loan terms, and eligibility criteria will be managed by the New Mexico Finance Authority.
Source: SB240, Capital Outlay Projects, Section 45, Page 104; Section 2 (effective dates and reversion provisions).