Wednesday, April 3, 1996 | 11:59 a.m.
Bank of America plans to lend at least $1.3 billion to small businesses in Nevada over the next three years.
The amount is part of a commitment announced by bank officials Tuesday to lend $10.6 billion over three years to small businesses in the Western states of Alaska, Arizona, Hawaii, Idaho, Nevada, New Mexico, Oregon, Texas and Washington.
Nevada is receiving the third highest portion of the $10.6 million behind California and Washington and a 40 percent increase in the amount available for small business loans in previous years, said Rod Dunnett, senior vice president and director of the Nevada Business Banking Division.
He said the commitment is being made not because of the threat of competition from Wells Fargo, which took over First Interstate Bank Monday, but because of Bank of America's strength in the Nevada market.
It is the largest small business lender in Nevada, with 33 percent market share and more than $382 million in outstanding small business loans as of last year.
"That is the largest share of any of the other (state) affiliates. That's why we have a bigger piece, even though we are a small state populationwise," Dunnett said.
The strength of Nevada's economy also figures into the equation, said bank spokesman Paul Stowell. "If we're aggressive in our lending, I believe we can help perpetuate ... the vitality in the economy," Dunnett added.
Bank economists estimate the lending level has the potential for creating 37,000 new jobs over the three years.
Bank of America Nevada is launching a two-week sales blitz during which its representatives will call personally on more than 1,000 small businesses across the state.
"This concentrated two-week campaign is part of BofA's ongoing commitment to this critically important sector," Dunnett said, adding that Nevada's small businesses have the drive and creativity to continue fueling the state's economy.
According to the Small Business Administration, America's 22 million small businesses employ about 45 percent of the private work force and create two out of every three new jobs.
Bank of America has recently announced several new programs to make it easier for small businesses to obtain credit. It now has a one-page application for credit lines and loans up to $100,000. In many cases, no financial statements are required for loans under $50,000.
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