Bank of America posted losses for the fourth quarter of 2009 but the financial giant is optimistic about the upcoming year and the results they expect to have from their company. Essentially, sticking with the basics and simply running good programs within the bank are said to be the goal over the next few months, which many executives feel, if done correctly, will return the bank to profitability.
Excessive spending is something that Bank of America says they will control in the future and obviously any bank doesn’t want unneeded costs flying out the door, so what does this mean for small businesses and small business lending?
Many institutions are wary about lending to small businesses as they are seen as a big risk and with so much of most bank’s loss coming from bad mortgages, banks are in no rush to loan money to uncertain ventures like small businesses.
However, according to a report from the Treasury Department, Bank of America is one of the top lenders to small businesses and has a balance of over $41 billion in small business loans.
Small business owners who are looking for a small business loan may want to turn to big lenders like Bank of America, Wells Fargo, or J P Morgan Chase for capital which could expand businesses, grow companies, and increase profits.
If Bank of America were to make more small business loans it would not only help the economy and possibly create jobs, but it could also bring in more capital, which may bring better numbers in the year to come.