Bank of America Corp (NYSE: BAC) said that it’s worked with CDC Small Business Finance to create a pool of Small Business Administration 504 first-mortgage loans for sale under the agency’s new secondary-market program, marking the first pool of its kind under the program.
The Charlotte-based bank’s purchase of $27.2 million worth of loans could be an encouragement to the loan’s originators to make additional credit available to small businesses.
CDC Small Business Finance President Kurt Chilcott said that the secondary market for SBA-504 loans “has been nearly frozen for two years.” He added, “We’re confident this action will kick-start SBA’s secondary market, generating new liquidity for banks so they can expand small-business lending, help stimulate growth and support new job creation.”
Bank of America Corp (NYSE: BAC) said that it created a SBA guaranteed pool of $25.6 million for distribution to investors. The SBA-504 program is designed to provide financing to purchased physical assets, such as equipment, buildings and other real estate.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.
Shares of Bank of America Corp (NYSE: BAC) traded down 1.21% during mid-day trading on Wednesday.
