Bank of America Ranked No. 1 for SBA 504 Loans in 2010

Extended More Capital by Dollars Than Any Other Lender in Ongoing Support of Nation’s Small Businesses

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CHARLOTTE, N.C.–(BUSINESS WIRE)– As part of its broad support for small businesses, Bank of America ranked No. 1 among all banks in the amount of credit extended through the U.S. Small Business Administration’s 504 loan program during the last fiscal year, according to SBA figures.

Bank of America originated more than $297 million in first-trust deed loans and $233 million in second-trust deed loans, for a total of more than $530 million in long-term, fixed-rate financing in the SBA’s 2010 fiscal year, which ended Sept. 30.

This is the second year in a row that Bank of America was the largest 504 lender by volume. The 504 program provides financing for the purchase of fixed assets, such as real estate, buildings and equipment.

“Our top ranking is a testament to our ongoing commitment to the nation’s small businesses,” said Jon Dowst, small business lending and SBA executive at Bank of America. “The SBA 504 program is a valuable option for small business owners who want to grow their companies, and our leadership in providing these loans is unparalleled.”

In a 504 loan, the transaction has three elements: a first mortgage from a bank for 50 percent of the project cost; a second mortgage from a Certified Development Company (CDC) covering up to 40 percent of the cost and backed with a SBA guarantee; and a 10 percent down payment from the small business borrower.

Bank of America also recently announced it has collaborated with CDC Small Business Finance to assemble the nation’s first pool of SBA 504 first-mortgage loans for sale under SBA’s new secondary market program. The bank’s purchase of these loans allows loan originators to make more credit available to small businesses.

Through the first-mortgage pooling program, Bank of America initially purchased $27.2 million in 504 loans and created an SBA guaranteed pool of $25.6 million for distribution to investors. The bank will retain the remaining unguaranteed $1.6 million of the initial purchase. The SBA announced this new secondary market program in October 2009.

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 (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

www.bankofamerica.com

Reporters May Contact:Jefferson George, Bank of America, 980.683.4798
jefferson.george@bankofamerica.com

Source: Bank of America