Bank of America has announced the launch of a Small Business Down Payment Grant Program. Its goal is to drive business growth and help create generational wealth opportunities for minority and women business owners.
Launching in select markets with plans to expand in 2023, the program will extend credit to historically disadvantaged small business borrowers. It will also provide support to make purchasing commercial real estate more affordable.
“Today, many business owners of diverse backgrounds lack the access to capital and technical assistance needed to qualify for commercial loans. Which can help secure transferable assets that build equity across generations,” said Jill Calabrese Bain, Small Business Integration and Transformation executive at Bank of America. “We’re committed to addressing inequalities in business ownership. We want to provide entrepreneurs with the access to expertise, resources and capital necessary to achieve their financial goals.”
The Grant Program
The program will be available for eligible women and minority business owners. They must be applying for Small Business Administration (SBA) 504 and 7(a) commercial real estate loans. Commercial real estate properties must be based in Opportunity Zones. This covers Atlanta, Chicago, Charlotte, Dallas and Los Angeles, as defined by the U.S. Treasury. Eligible business owners can apply for down payment grants, covering up to 50 percent of required injection (capped at $25,000).
Program eligibility requirements also necessitate 51 percent women or minority business ownership and owner occupancy, and a 5 percent minimum down payment from the applicant. Additionally, Bank of America small business specialists will team up with local small business-centric non-profit partners to provide financial education services.
Other Bank of America Resources
Bank of America is committed to helping small business owners in local communities across the country. It has numerous resources beyond the Small Business Down Payment Grant Program, including:
- Secured Credit Offerings: offers a credit line from $1,000 to $50,000 to business owners. Bank of America also debuted the Business Advantage Unlimited Cash Rewards Mastercard Secured credit card. This is a new tool to help business owners establish, strengthen or rebuild their business credit – all while providing cardholders with the benefits that matter most to their business. The credit line ranges from $1,000 to $10,000, earning unlimited 1.5% cash back on all purchases.
- Access to Capital Directory: a comprehensive database designed in partnership with Seneca Women. It helps women and minority entrepreneurs learn more about navigating the capital landscape and identifying potential sources of funding.
- Start a Business Center: a resource for consolidated content to help potential and new business owners learn how to start or grow their businesses. The digital experience offers resources such as business plan templates, partners for critical services and access to Bank of America Small Business specialists. Clients can utilize tips and considerations on writing a business plan, business legal structures, marketing strategy and business financing options.
- Small Business Resources: the site features tools, insights, and expert advice to help entrepreneurs run and grow their businesses. The educational hub provides tips and solutions for all aspects of business ownership. It covers topics including business strategy, customer relations, financing options, optimizing operations, managing cash flow and more.
The Community Affordable Loan Solution
In related news, Bank of America also announced it is offering a zero down payment, zero closing cost mortgage solution in select markets. The new Community Affordable Loan Solution aims to help eligible individuals and families obtain an affordable loan to purchase a home. It is now available to first-time homebuyers purchasing in select Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami. This new program complements the existing $15 billion Bank of America Community Homeownership Commitment. The plan provides affordable mortgages, grants and educational opportunities. The goal is to help 60,000 low-to-moderate-income individuals and families into affordable homes by 2025.
About Bank of America
Bank of America is one of the world’s leading financial institutions. It serves individual consumers, small and middle-market businesses and large corporations. It has a full range of banking, investing, asset management and other financial and risk management products and services. The company provides in the United States, serving approximately 67 million consumer and small business clients. It has approximately 4,000 retail financial centers, approximately 16,000 ATMs and digital banking with approximately 55 million verified digital users.
Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes. It offers support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock ( NYSE: BAC) is listed on the New York Stock Exchange.
To learn more, download the Bank of America app or visit bankofamerica.com/smallbusiness.
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