SBA 504 Loans - New Data Shows Bank Of America Tops List Of Lenders

Bank of America has been rated no. 1 compared to all other banks in terms of the dollar amount of credit provided as part of the Small Business Administration’s 504 loan scheme during the past fiscal year. The firm extended in excess of $297 million in first-trust deed loans and roughly $233 million in second-trust deed loans. This totals over $530 million in long-term, fixed-rate financing in fiscal year 2010.

Bank of America has topped this list for two consecutive years. The SBA 504 program provides credit that would go to the purchase of fixed assets — real estate, buildings, and equipment.

“Our top ranking is a testament to our ongoing commitment to the nation’s small businesses,” said Jon Dowst, small business lending and SBA executive at Bank of America. “The SBA 504 program is a valuable option for small business owners who want to grow their companies, and our leadership in providing these loans is unparalleled.”

The SBA 504 loan has 3 components : the first being a mortgage from a large bank covering 50% of the purchase cost; another mortgage obtained from a Certified Development Company for 40% of the purchase cost; the remaining 10% must be provided as a down payment from the borrowers themselves.

Bank of America serves a wide and varied market such as individual customers, small and mid-market size businesses, as well as huge multi-national corporations. Services range from online banking, personal banking, asset management and other financial items.