Banking on community – $40B for economic development

In 1999, the Bank of America loaned and invested $39.6 billion dollars in the areas of small business, affordable housing, economic development and consumer loans, completing the first year of its 10-year, $350 billion community development initiative.

The bank spent more than $25 billion in 1999 on affordable housing, including loans, investments, and mortgages. Of that money, more than $23 billion went to mortgages for low-and moderate-income borrowers. More than half the mortgage money went to minorities.

“We will build on the momentum and success of this first year to spur more lending and investment in low- and moderate-income communities, neighborhoods and rural areas,” said Hugh McColl, Jr., chairman and chief executive officer of Bank of America.

The bank distributed over $7 billion in small business loans and more than $3 billion in economic development initiatives, including investing more than $100 million in Community Development Capital Funds. These funds provide equity for small businesses, particularly those owned by women and minorities, creating an estimated 10,000 jobs.

Bank of America, the largest bank in the United States, made its 10-year, $350 billion commitment in May 1998, prior to its merger with Nationsbank. The 10-year program earmarks $180 billion for small business, $115 billion for affordable housing, $25 billion for economic development and $30 billion for consumer loans.

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