Banks To Increase Lending To Small Businesses
After meeting with Vice President Joe Biden, major lenders are increasing loans to small businesses. According to American Banker, Biden met with executives from 13 banks including Citigroup, KeyCorp and M&T Bank. Citigroup pledged $24 billion in loans to small business in the U.S. over the next 3 years.
President Barack Obama has said that small-business lending is a key element in the economic recovery, and several banks have announced initiatives to increase their lending. Vikram Pandit, Citi’s chief executive, said in a press release, “We recognize the vital role small businesses play in our economy.”
Citi said it committed $7 billion in loans to small business this year, $8 billion next year and $9 billion in 2013. Last year, the company made $6 billion in small-business loans, and in 2009 the amount was $4.5 billion.
U.S. Vice President Joe Biden and Small Business Administration Administrator Karen Mills met with 13 banks in Cleveland on Tuesday. After the meeting, KeyCorp, a big regional bank in the Midwest and Alaska, said it would provide $5 billion to small-business owners over the next three years; M&T Bank Corp. of Buffalo, N.Y., said it would increase small-business lending by $50 million from 2010’s level in each of the next three years.
J.P. Morgan Chase & Co. pledged in April to provide $12 billion in small-business loans this year alone — 20% more than last year’s commitment.
Photo by Andrew Magill
