Bank of America Giving $10 Million to Boost Small Business Loans
Aug 2nd, 2010 @ 3:52 AM by Debbie Dragon
Last week Bank of America made an announcement that potentially could help boost loans to small businesses throughout the country. Bank of America will be giving $10 million in grants that could have a large impact on small business lending. Community Development Financial Institutions and other non-profit micro-lenders who will receive the grant are expected to turn the $10 million in grant money into $100 million in loans to small businesses. Bank of America, is taking a bold step and is the first large financial bank to ever give money, not lend money to these type of organizations.
“We started hearing that the availability of money was tied up because of the lack of reserves and thought this [initiative] was the best way to address it,” said David Darnell, president of global commercial banking at Bank of America.
Large banks have shut down lending to small businesses and business owners across the country have been struggling to get loans, even those businesses that are financially sound. Many of these businesses have turned to these non-profit institutions for help.
“For a lot of CDFIs, the ability to lend is dependent upon having that slice of grant support to fund the loan loss reserves,” said Shari Berenbach, president and chief executive of Bethesda-based Calvert Foundation, a financial intermediary that funds such reserves. “This kind of a grant is incredibly catalytic.”
There are over 175 lenders who are involved and lend to small businesses in the SBA program. These loans are for an average of $13,000 per loan. If the loans they make with the grant money average this amount, Bank of America’s contribution could help around 8,000 businesses. Bank of America is hoping to get the grant money rolled out as quickly as possible.
“We want the grants to be out in 12 months, so the [institutions] are able to draw down the funds from the SBA so that we are looking at $100 million in the hands of small businesses in 12 months, “said Dan Letendre, director of community lending and investing at Bank of America.
These funds truly could give many small businesses the boost that they need to operate and expand. It has been argued by many that small businesses are key to the economy and this could potentially be the start.
Other banks also have helped to fund these non-profits including TD Bank and Wells Fargo.
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.
Είμαι Έλληνας κάτοικος ΕΛΛΆΔΑ .
Χρειάζομαι ένα προσωπικό δάνειο .
Ποιος μπορεί να με βοηθήσει να μου πει ένα email διεύθυνση ? ? ?
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I need a personal loan.
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