Bank of America Terminating Some Small Business Credit Lines

According to an article in the Los Angeles Times, Bank of America Corp., is reacting to pressure from regulators to raise capital and reduce credit risks by terminating the lines of credit to some small business owners.  

The LA Times reports Bank of America is demanding that some small business customers pay off their credit line balances in full instead of continuing to make monthly payments. If the customers can't pay the entire balance, the bank is presenting new arrangements at significantly higher interest rates than the original credit lines.

A BofA  spokesman told the LA Times that "the aim was to reduce Bank of America's risks and to bring the loan terms in line with more stringent standards imposed after the 2007 mortgage meltdown and 2008 credit crisis."

Read the article.