A total of $3,659,718 in rehabilitation dollars have been loaned by the Historic Preservation Division (HPD) and participating lending institutions on ten (10) properties through the New Mexico Historic Preservation Loan Program. As of 2003, HPD's share in these projects has been $635,152, more than doubling the $300,000 allocated by the State Legislature for this Loan Fund between 1989 and 1993 (see, Summary of Loan Fund Projects). Seven of the ten loans have been paid in full, two loans are current in their commitments to the program, and one loan is being restructured. Properties participating in the program must be listed on the State Register of Cultural Properties. Nine of the projects have participated in the State Tax Credits for Rehabilitation program administered by HPD. A major challenge for the Loan Fund has been the difficulty in attracting lending institutions to partner with the limited state funds. Increased state funding to the Loan Fund would attract greater participation by local banks.

In 2002, Los Alamos National Bank (LANB) partnered with HPD in a $70,598 loan for 241 Irvine in Santa Fe, the first loan fund project in Santa Fe County. The one story adobe residence was constructed in the 1920's and is a contributing property within the Santa Fe Historic District. The owners and neighbors on Irvine Street are proud of the completed rehabilitation that returned this once condemned house to residential use. LANB is Lender of Record and HPD purchased a $47,000 participation in the loan. Work was completed in July, 2003.

In 2003, the Eklund Hotel in Clayton, Union County participated in the Loan Program and HPD committed $200,000 toward the $2,360,120 rehabilitation of the 3 story hotel. First National Bank of New Mexico, Clayton, is Lender of Record and the US Department of Agriculture has participated with a loan guaranty. The Eklund was built to provide an elegant, well-appointed hotel and dining room for the town of Clayton and the surrounding region, after the arrival of the railroad in 1888. The core of the building dates to 1892, and took on its current appearance as a 3 story hotel, with a dining room, in 1905. Completion of the rehabilitation is scheduled for early 2004.

Since 1989, nine historic properties have been successfully rehabilitated in seven counties: Grant, Bernalillo, Colfax, Taos, Valencia, Santa Fe, and Socorro.

The New Mexico Historic Preservation Loan Program was established by the State Legislature in 1987 "to provide owners of registered cultural properties in New Mexico with low-cost financial assistance in the restoration, rehabilitation and repair of properties listed in the state register of cultural properties...through the creation of a self-sustaining revolving loan program..." (Section 18-6-19 NMSA 1978). HPD has worked with local banks, the National Trust for Historic Preservation, and the New Mexico Mortgage Finance Authority as lenders to leverage the amount of loan funds available for historic preservation.

Loans are structured to last for five years with a blended interest rate (from all loan partners) that is considerably less than traditional financing. HPD provides preservation assistance to ensure the historic integrity of the properties is maintained, while the Lender of Record is responsible for loan processing.