Charlotte, North Carolina (PRESS RELEASE – October 29, 2010) – As part of its support of small and medium-sized businesses and their role in job creation, Bank of America announced that it loaned $25.9 billion to these businesses in the third quarter of 2010.
In the first nine months of 2010, the bank loaned a total of $71.2 billion to small and medium-sized businesses – those with less than $50 million in annual revenues. That amount represents an increase of $12.6 billion over the same period last year.
Last December, Bank of America pledged to increase lending to small and medium-sized businesses by $5 billion in 2010. The company loaned $81.4 billion to those businesses in 2009.
“In this challenging economy, small and medium-sized businesses are vital to the nation’s ongoing recovery. Without their help, creating new jobs will continue to be a challenge,” said David Darnell, president of Global Commercial Banking for Bank of America. “While we continue trying to make every good loan we can, demand for new credit among smaller businesses remains limited. Business owners instead have told us their greatest need is more demand for their goods and services.”
In addition to lending, Bank of America has launched several initiatives to help small businesses. Earlier this month, the bank announced it will hire more than 1,000 small business bankers by early 2012. The bank also has pledged to increase its spending with small, medium-sized and diverse businesses by purchasing $10 billion in products and services from those suppliers over the next five years.
Bank of America this summer launched a $10 million grant program for Community Development Financial Institutions (CDFIs) and other nonprofit lenders, aimed at unlocking $100 million in low-cost, long-term capital for small and rural businesses. As of September 30, the bank had awarded $3.7 million in grants that allowed CDFIs to access nearly $27.5 million in lending capital. Bank of America is the nation’s largest lender to CDFIs, with more than $1 billion in loans and investments to 120 CDFIs in 37 states.
Next week, Bank of America will release its Lending and Investing Initiative report for the third quarter of 2010, which outlines the credit extended in areas critical to the nation’s economic recovery. In addition to small business lending, the report will detail residential mortgage activity, home loan modifications, commercial and corporate lending, and financing to CDFIs.
Bank of America
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,900 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (BAC 11.52, -0.01, -0.09%) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.