New banking venture will fund loans to small businesses
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ORANGE — A consortium of area banks, concerned that small-business owners aren’t getting loans, has committed $1.6 million to a loan pool for the newly formed Bankers Small Business
Community Development Corp. of Orange County. The corporation, with investments from 28 financial institutions, will provide financing for small businesses, particularly those owned by
minorities and women, and to stimulate economic growth in underserved areas of the county. Area bankers began meeting more than two years ago to find a way to give small businesses loans
they can’t get from commercial banks, and a committee was formed to start organizing the corporation. The new venture will rely more on a borrower’s character and cash flow than on the
collateral that banks typically require, said Mindy Murphy, chairwoman of the corporation and an Imperial Bank executive. Once the operation receives lending approval from the state, which
is expected within two months, the corporation will offer business loans of up to $50,000 and letters of credit of up to $25,000. MORE TO READ