Bofa Military's Shift in Lending Practices

Bank of America's military lending practices have undergone significant changes over the years. The bank's efforts to cater to the unique financial needs of military personnel and veterans have been a major focus area.

One notable shift in lending practices is the bank's decision to offer more favorable terms to military borrowers. This includes lower interest rates and more flexible repayment options.

The bank's Military Lending Act-compliant loans have been a game-changer for many military personnel. These loans have helped borrowers avoid predatory lending practices and high interest rates.

By offering more competitive loan options, Bank of America has demonstrated its commitment to supporting the financial well-being of military personnel and their families.

Readers also liked: Mortgage Rates Bad Credit Home Loans

Bank of America has made some notable decisions regarding its involvement with the gun industry. The bank has stopped lending to gun-manufacturing companies that produce "military style" rifles for civilians, affecting clients like Remington, Vista Outdoor, and Sturm Ruger.

This decision comes after "intense conversations" about company values and intentions, according to Anne Finucane, the bank's vice chairman. The bank aims to contribute to reducing mass shootings.

The bank has also launched a $20 million lending program for U.S. military veteran entrepreneurs. This program will provide affordable loans to help veteran-owned businesses get started and grow.

The program will be administered through community development financial institutions (CDFIs) in seven U.S. states, including North and South Carolina, Colorado, New York, California, Texas, and Oklahoma.

Bank of America's decision to stop financing gun-manufacturing companies that produce "military style" rifles is a significant move.

The bank made this decision after intense conversations about company values and intentions. Anne Finucane, the bank's vice chairman, stated that they want to contribute to reducing mass shootings.

Remington, Vista Outdoor, and Sturm Ruger are three clients affected by this decision. Bank of America ranks as the second-largest bank in the U.S. by assets.

The news comes just weeks after Citigroup placed restrictions on its business partners, including new policies that require retail sector clients to refuse the sale of firearms to those who haven't passed a background check.

Gun rights activists, like the National Rifle Association, argue that the AR-15, a semiautomatic rifle used in the Parkland shooting, doesn't count as an assault rifle. However, it does fall under "military style" as it was originally modeled after military-use rifles.

Avery Gardiner, co-president of the Brady Campaign, a gun control advocacy group, is excited about the moves being made by Wall Street banks.

Bank of America has launched a $20 million lending program to help U.S. military veteran entrepreneurs access affordable capital to start and grow their businesses.

The program will be administered through participating community development financial institutions (CDFIs), which have expertise in lending to small businesses and an understanding of local circumstances.

Loans will be offered in seven U.S. states, including North and South Carolina, Colorado, New York, California, Texas, and Oklahoma.

The program will kick off in these states with the following CDFIs administering the loans: Carolina Small Business Development Fund, Colorado Enterprise Fund, Excelsior Growth Fund, Main Street Launch, PeopleFund, and others.

Each year, more than 200,000 U.S. service members return to civilian life, including 10 percent with a desire to own a business, creating a pipeline of potential borrowers.

The program aims to help veteran-owned businesses, which help drive economic growth and job creation in local communities.

Borrowers will participate in a two-month training program led by learning partners, offering technical assistance and other resources to help them stay on a path of success and grow their businesses.

Here's a list of the participating CDFIs and the states they will serve: