Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Bank of America hiring small biz bankers

By Catherine Clifford, staff reporter

NEW YORK (CNNMoney.com) -- Bank of America will hire 1,000 new small business bankers by early 2012, the company announced Thursday.

The Charlotte-based financial giant says that this is just one step toward a commitment to increasing its support for small businesses.

The first wave of additional bankers will be added in Dallas, Los Angeles, Baltimore and Washington, D.C. They will focus on companies with less than $3 million in annual revenue and will work closely with local business owners, spending time at their place of business and learning about the companies, according to CEO Brian Moynihan.

"Our small business bankers will live and work in the communities they serve, making them uniquely qualified to work with these businesses and provide the best combination of financial services to help them grow," Moynihan said during keynote remarks at a Chief Executive Club of Boston luncheon.

The new legion of bankers will advise Main Street businesses on issues ranging from cash management to payroll to retirement funding. "Credit will be part of the solution set that we have for our small business owners," said Kerrie Campbell, who leads Bank of America's small business lending unit. "It is very relationship focused."

That's new territory for a national bank: It's the smaller community banks that usually stand out for their relationship building. As a result, most small business banking happens with community banks.

The nation's largest banks have a lot of ground to make up: Credit lines and loans to small companies were slashed during the Great Recession. Federal Reserve chairman Ben Bernanke recently estimated that $40 billion worth of loans to small businesses disappeared.

Bank of America played its part in the decline. Like many banks, it makes loans through the Small Business Administration's government-banked lending programs. Those loans represent a very small portion of overall small business lending, but they are an easily tracked indicator of a bank's lending activity -- and Bank of America (BAC, Fortune 500) has pulled back sharply.

In 2008, Bank of America made 3,296 loans totaling $102.3 million through the SBA's flagship 7(a) loan program. Many went bad: Ken Lewis, then the company's CEO, infamously called the bank's small business loan portfolio a "damn disaster." In 2009, at the height of the credit crisis, the financial giant made just 308 SBA loans, totaling $17.6 million.

Its lending barely picked up in 2010. In the SBA fiscal year that ended Sept. 30, Bank of America made 185 7(a) loans, totaling $22.8 million.

Bank of America said that its steep drop-off stemmed from a shortage in both demand and in qualified borrowers.

"Among those seeking loans, the creditworthiness of many businesses has changed," bank spokesman Jefferson George said. "Cash flow -- the most important factor -- often is down. The value of collateral, such as real estate or equipment, has decreased." To top of page

Questions & Answers

QHow does a florist sell more in this economy? We changed our business to designing weddings and events only, as the everyday flowers are not selling. We had to throw out too much product at the end of the week -- flowers are perishable! More
Get Answer
- The Flower Lady, Suwanee, Ga.
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.93%3.86%
15 yr fixed2.99%3.02%
5/1 ARM3.26%3.20%
30 yr refi3.98%3.92%
15 yr refi3.05%3.06%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:


The financial deck appears to be stacked against blacks and Hispanics in America. They earn considerably less. They are more likely to be unemployed or in poverty and they are less likely to own a home. Yet despite all this, blacks and Hispanics are far more optimistic about being able to live the American Dream these days than whites. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Some of the coolest toys this year are from small businesses. Here are 10 hot toys that just might be a smash hit this holiday season. More

Your new credit card might be safer, but it could lead to more headaches at the check-out line this holiday season. More