by J. Brooks Terry
Staff Writer
Local banks have contributed more than $350,000 to a specially designed small business capital loan program. The City Council is largely pleased with that figure, but last week one of its committees expressed concern that Bank of America has yet to make a similar commitment. And, according to the bank, it won’t.
The Mayor’s Office began marketing the Small and Emerging Business Program to the local banking community in November and so far Wachovia, First Guarantee, CenterBank, Prosperity, EverBank and Vystar Credit Union have each made sizable contributions of up to $200,000.
Small businesses who are under contract with the City will be eligible to borrow those dollars to cover capital expenses.
Council member Mia Jones wants to know why Bank of America “has yet to step up to the plate.”
“They should have been the first people to cut a check,” she said. “They make a lot of money off us so it wouldn’t be right if they didn’t contribute to the program.”
Jones told Kevin Holzendorf, a policy director in Mayor John Peyton’s office, last week that if the bank didn’t contribute to the loan program, the City should consider moving its money elsewhere.
“I just feel that if we aren’t one of their biggest clients, we’re probably the biggest,” Jones said. “How can we support them if they aren’t supporting us?”
Before the Council meets Tuesday evening, Jones said she would work with Council auditors to determine the process and long-term impact of closing the City’s Bank of America accounts.
“I’ve also asked the administration to let me know if we’ve made any further progress with (Bank of America) before then,” she said.
Holzendorf, a former Bank of America branch manager who has led much of the City’s efforts to bring the SEB program online for months, said the delay was likely a result of Bank of America undergoing a change in leadership.
In January, former regional president Mac Holley announced his resignation. Holzendorf said his successor, Jim Gallagher, is still in the middle of making a transition into his new role with the bank.
“In our negotiations with all of the banks, we’ve dealt directly with the individual presidents,” Holzendorf said. “That change in leadership there has made it somewhat difficult for them to make a firm commitment to us.
Holzendorf said the City would not threaten to close any of its accounts with the bank as a means to secure a contribution of
any size.
“No, we would not resort to something like that,” he said. “We’re confident that the value of the program will be enough and, at the end of the day, they will be open to embracing it without any unnecessary pressure.”
But, as of Friday afternoon, the bank had no intentions of contributing any money to loan program.
“Bank of America is one of the largest contributors of economic development initiatives in the area,” said spokesman George Owen said, referencing the bank’s role in programs such as the Regional Chamber of Commerce’s Cornerstone business development arm. “Right now we’re not participating in this program.”