Banks Pledge $20 Billion in Small Business Loans
Wednesday, September 21, 2011
President Joe Biden, joined by Small Business Administrator (SBA) Administrator
Karen Mills, announced new commitments by 13 US banks to increase small
business lending by $20 billion over the next three years. The
capital commitment will be used by the SBA to support all of its small business
lending platforms, and will represent a 10% increase above current levels of
small business lending, according to the SBA.
particular, the SBA intends to focus on channeling more capital towards the
Community Advantage program, which allows community-based lending
intermediaries to access 7(a) loan guarantees for loans up to $250,000.
Since Community Advantage’s launch earlier this year, more than 500 CDFIs,
CDCs, and SBA Microlenders are now registered as Community Advantage Lenders.
As of last week, the SBA has
approved more than $18 billion in lending under its 7(a) and Arc loan programs
this fiscal year, up from $12.4 billion in 2010 and $8.6 billion in 2009,
agency lending data show. Earlier this month, Wells Fargo
became the first lender to issue more than $1 billion in SBA loans in a single
year. The next top nine lenders combined have issued some $3.5 billion.
list of banks that said they will increase small business lending by a combined $20
billion are: Wells Fargo, Key Corp., Regions Financial Corp., Huntington
Bancshares Inc., M&T Bank Corp., JP Morgan Chase & Co., Citizens
Financial Group Inc., Citigroup, Bank of America Merrill Lynch, TD Bank, US
Bank, PNC Bank NA., and Sun Trust Banks Inc.