Bank of America Corp (NYSE:BAC) announced the launch of an online community development financial institution (CDFI) directory to connect small businesses to more capital. This nationwide directory,www.bankofamerica.com/cdfi, will enable entrepreneurs and small business owners to find a CDFI in their community, creating an opportunity to access funding to help grow their businesses.
Many small business owners and others are unaware that CDFIs are nearby and can provide capital and technical support including business plan development, marketing basics, management training and more. CDFIs are private-sector local loan centers that offer financing for small businesses, affordable housing and other economic revitalization projects, primarily within low- and moderate-income communities. CDFIs are often a good source of capital for those who may not qualify for a traditional bank loan.
“Through our more than $1 billion investment in CDFIs and our small business banking referrals, there’s potential to provide more capital to help small businesses grow across the nation,” said Andrew Plepler, Corporate Social Responsibility executive, Bank of America. “Ideally, with increased awareness and tools like our searchable directory, more people will come to understand and use CDFIs as viable sources of funding.”
The directory includes approximately 120 CDFIs that are financially supported by Bank of America and lend to small businesses across the United States. The directory enables users to enter their location and desired loan amount, resulting in a list of local CDFIs from which to choose. A potential applicant can easily initiate contact and begin the loan application process.
To learn more, including what to expect when contacting a local CDFI, watch the “What is a CDFI?” video.
“In addition to the local expertise we provide and the many ways we work with small business owners throughout the country, offering access to local CDFIs is another way we try to help entrepreneurs grow their business,” said Robb Hilson, Small Business executive, Bank of America. “Whether it’s through deposit and cash management solutions, access to credit or our connections to CDFIs and other small business resources in our local markets, we provide holistic support for small business owners.”
In addition to promoting sources of funding for small business owners, Bank of America presents other opportunities to get capital into the hands of those who need it most, including women entrepreneurs. For example, the Tory Burch Foundation Capital Program (formerly Elizabeth Street Capital), a Tory Burch Foundation and Bank of America initiative launched in 2014, provides $10 million in affordable loans for eligible women entrepreneurs, in conjunction with mentoring support and networking opportunities. CDFIs leveraging this funding are identified in the directory. (Original Source)
Shares of Bank of America closed yesterday at $15.58. BAC has a 1-year high of $18.48 and a 1-year low of $14.60. The stock’s 50-day moving average is $16.16 and its 200-day moving average is $16.50.
On the ratings front, Bank of America has been the subject of a number of recent research reports. In a report issued on September 25, Deutsche Bank analyst Matt O’Connor maintained a Buy rating on BAC, with a price target of $20, which implies an upside of 28.4% from current levels. Separately, on September 18, Buckingham Research’s James Mitchell assigned a Buy rating to the stock and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matt O’Connor and James Mitchell have a total average return of -1.4% and 61.0% respectively. O’Connor has a success rate of 32.4% and is ranked #2932 out of 3755 analysts, while Mitchell has a success rate of 80.8% and is ranked #19.
Overall, one research analyst has rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $20.20 which is 29.7% above where the stock closed yesterday.