Morgan Stanley to Offer More Small Businesses Loans
Morgan Stanley is planning to spend up to $500 million in order to purchase new and existing commercial real estate loans from regional banks and then use the cash generated in order to make new loans back to the small business sector. This program, called SBA 504, will initially be operated through the NPO Community Reinvestment Fund and CDC Capital, a small business development company.
The goal of the program is primarily to help the owners of small businesses who have been hurt by the sluggish economy to get long-term financing in order to expand and in the process create new jobs. The regional banks benefit by reducing their credit exposure and interest rate risk, which also allows them to make more small business loans and helps improve their liquidity profiles.
Misc | Matthew Alberto | 23 September 2012 |
