Mexico to Fund Latino Ventures : Trade: The government puts up $20 million to assist projects south of the border between Americans and Mexicans.

In an unusual step related to the proposed North American free trade agreement, the Mexican government on Wednesday said it will help fund joint ventures in Mexico between U.S. Latinos and Mexican nationals.

The initial $20 million set aside for investment in Mexico won the support of many Latino business people who have rallied behind a proposed free trade pact but feared they would miss out on any of the benefits.

“We are the machinery in this free trade agreement but we are not getting a fair share,” said Lucia De Garcia, chairwoman of the International Business Affairs Council of the Latin Business Assn. “We are talking about small (Latino) companies. We don’t stand a chance. The ones that get the opportunities are the big corporations.”

A free trade agreement between the United States, Mexico and Canada is expected to generate additional business by reducing trade and investment barriers between the three nations.

U.S. Trade Representative Carla Anderson Hills, Canadian International Trade Minister Brian Wilson and Mexican Trade Secretary Jaime Serrapuche will meet this weekend in Mexico City to settle remaining unresolved issues. The three are scheduled to hold a press conference Sunday and could discuss final details of an agreement.

The Latino-Mexican program, announced during the National Council of La Raza’s annual conference in Los Angeles, opens up to Latino entrepreneurs north of the border an already established Mexican government program to foster business development in that country. Latino businesses were singled out for the program as part of a Mexican policy that supports expatriate communities.

Under the program financed by Nacional Financiera, Mexico’s largest development bank, the government would fund up to 25% of a joint venture and become a partner. In addition, the bank and the Mexican Investment Board, which encourages foreign investment in Mexico, will provide information on potential Mexican partners and other technical assistance.

The program “is targeted to small- and medium-sized enterprises, not really for large corporations,” said Martin Torres, a spokesman for the Mexican consulate in Los Angeles. Joint ventures in most industries would be considered for financing, he said.

Latino and Mexican officials have been working on the program for more than a year, said Jose Nino, president of the U.S. Hispanic Chamber of Commerce. The program will help prepare small- and medium-size Latino-owned firms for the anticipated increase in business resulting from a free trade agreement, he said.

“We both know that when the North American free trade agreement goes through, small businesses, especially Hispanic microbusinesses, will be moved fast-forward into foreign trade,” Nino said. “This fund was created for these opportunities.”

Latino business leaders concede the initial $20 million available under the fund is not enough. The pact, however, also serves as a symbol of the strong ties between Latinos on both sides of the border, Nino said.

Latino businesses interested in the program should contact the Mexican Investment Board or the U.S. Hispanic Chamber of Commerce in Washington and the California Hispanic Chamber of Commerce in San Francisco, officials said.