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Small Business Grants May Be Coming Thanks to BOA
Bank of America, one of America’s biggest financial institutions will be providing $10 million in small business grants to Community Development Financial Institutions and other nonprofit microlenders, who many times offer credit to borrowers who may have poor credit and may not otherwise qualify for traditional loans. And BOA is not lending this money. Instead they are giving it in order to spur some $100 million in small business lending.
This is welcomed news by many small businesses who have suffered financial hardships during the downturned economy. Especially with the tightening that commercial lending institutions have put on their small business lending practices, leaving smaller institutions to fill the void and sometimes even at a loss.
There are more than 175 nonprofit lenders who participate in the Small Business Associations’ program, providing smaller loans of on average of $13,000. Hence, Bank of America believes that the small business grants will help nearly 8,000 businesses secure new loans.
It is believed that other banks will be following in Bank of America’s footsteps. In fact, other banks, including Chase and Wells Fargo, are planning to launch similar programs.
