November 15, 2010
The Bank of America Small Business Reserve Grant Program announced a $125,000 grant for NDC’s small business lending arm, the Grow America Fund. GAF is a non-bank lender and Community Development Finance Institution (CDFI) licensed to make SBA 7(a) loans with a guarantee securing 75-90% of every loan made. These grant funds will be added to the GAF equity pool to support the 10-25% unguaranteed portion of GAF loans. For each $1 of grant funds, GAF can borrow up to $9 from its lending partners to fund small business lending. The $125,000 in grant dollars will result an additional $1,000,000 of loan volume – funds that are sorely needed by the small businesses that GAF supports.
GAF is one of many CDFIs to receive grant funds from Bank of America through this $10 million program specifically designed to fund loan loss reserves.