Bank of America May Cut Off Small Business Credit
There is bad news for small businesses that rely on Bank of America for credit. The Los Angeles Times reports that Bank of America is demanding small businesses pay off entire loans and even plans to cut off some small businesses.
According to the Los Angeles Times businesses that can not pay off their loans in full have the option of high-interest repayment plans, but will likely find that less or no credit is now available to them.
Bank of America representatives insist they still support small business.
“We put in some standard practices for a very small percentage of customers – such as a maturity date and an annual renewal process – to better align the terms and conditions of these credit agreements with those of our current line of credit products,” said Bank of America spokesperson Jefferson George.
Small businesses who bank with Bank of America should be on the lookout for changes in payment plans and available credit. If you have a line of credit with Bank of America have you seen a change recently?