Source: East Bay Business Times |
The Berkeley-based nonprofit Greenlining Institute gave Bank of America Corp., the top overall ranking among banks making U.S. Small Business Administration loans to minorities.
The Institute issued its annual report card Jan. 30 based on data for fiscal year 2007 provided by the SBA through a Freedom of Information Act request.
Bank of America ranked first among the nation’s top SBA lenders in the number of loans made to minorities overall (5,468), number of loans made to blacks (1,422), percent of loans made to blacks (13 percent), number of loans made to Asian Americans (1,938) and number of loans made to Hispanics (2,041).
Citigroup Inc., the New York-based parent of Citibank, topped the group’s rankings in percent of loans made to minorities overall (56 percent), percent of loans made to Asian Americans (30 percent) and percent of loans made to Hispanics (19.4 percent). Citigroup came out fourth in the Greenlining Institute’s overall rankings.
U.S. Bank in San Francisco came in No. 6 in the overall ranking and Wachovia Bank got the No. 8 overall ranking.
The rankings are intended to encourage competition among SBA loan-originating banks, defined as as banks with more than $50 million in assets and that originate more than 200 SBA loans per year.
The group says that the number of minority-owned businesses in the United States is growing at two to three times the national average for all U.S. businesses, but the proportion of SBA loans going to minority entrepreneurs has remained constant at one-third of all loans.
Bank of America has its headquarters in Charlotte, N.C., and is the East Bay’s second-largest bank by deposits. Wachovia, also based in Charlotte, entered the California market recently with its purchase of Oakland-based Golden West Financial Corp. and Westcorp in Southern California. Wachovia is now the third-largest bank in the East Bay by deposits.