Bank of America Unveils Online Platform to Connect Small Businesses with Financing Options
Bank of America has introduced the Access to Capital Connector, an online platform designed to help link small-Business owners and entrepreneurs with community development financial institutions (CDFIs) for capital and other resources. This initiative aims to reduce barriers faced by small-business owners who do not qualify for traditional bank loans.
The platform, developed in partnership with Community Reinvestment Fund USA, allows applicants to get pre-qualified for loans by answering general questions about their business. It then connects them with CDFIs that can meet their financial needs. More than 150 CDFIs are available on the platform, vetted by Bank of America and CRF.
Pam Seagle, senior vice president of inclusive entrepreneurship at Bank of America, believes this platform will bridge the gap between self-funding and traditional bank-loan readiness. It will not only provide small businesses with the capital they need but also help them build a payments history to qualify for traditional bank financing in the future.
This initiative follows Bank of America’s previous efforts to assist small businesses in accessing financing sources. The Access to Capital Connector is based on an existing CRF platform called CRF Connect, which aggregates information from potential borrowers and matches them with CDFIs based on various factors.
The platform offers streamlined assistance to small-business owners seeking capital or other support in growing their companies. CDFIs on the platform typically lend between $10,000 and $1 million, with interest rates ranging from 7% to 15%. In cases where financing is not obtained, owners will be directed to resources for business plan development and credit improvement.
Awareness of CDFIs as potential capital sources for small businesses is increasing, as highlighted in a report by the Federal Reserve Bank of San Francisco. These institutions played a crucial role in providing quick loans to small businesses during the pandemic.
Bank of America’s partnership with CRF to launch the Access to Capital Connector platform demonstrates a commitment to supporting small businesses and fostering relationships with CDFIs. The initiative aims to create more symbiotic relationships between large banks and CDFIs, opening channels for collaboration and financing opportunities.
This innovative platform signals Bank of America’s dedication to empowering small businesses and entrepreneurs by providing accessible and efficient financing solutions.
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