Bank of America awards $3.7 million to nonprofits to back microloan financing

Bank of America gives $3.7 million for microloans

CHARLOTTE, N.C. — Bank of America Corp. said Wednesday it awarded more than $3.7 million in grants to nonprofits ot use in backing microloan programs.

The bank said it has provided more than 40 grants to community development financial institutions and other nonprofits that will enable them to access federal microloan programs. Microloans are very small loans given to help support entrepreneurs who otherwise can’t access funding for their small businesses.

In the six weeks that the grants have been available, the nonprofits have used the funds to access nearly $27.5 million for microloans and other lending from the Small Business Administration and Agriculture Department. The organizations expect to make 2,000 new microloans to small businesses and startups with this round of grants, aiming to help retain or create 4,000 jobs around the country.

The money from Bank of America is used to fund loan-loss reserves, or funding that companies must set aside to cover loans that might not get paid back. Bank of America shares fell 17 cents to close at $13.39.