Morgan Stanley to provide $500 million to US loan programme for small businesses

11 Feb 2011

1

Morgan Stanley (NYSE: MS) yesterday announced a new initiative to help deliver up to $500 million of credit to small businesses seeking to increase investment and create new jobs.

"In collaboration with national non-profits and local community banks, Morgan Stanleywill enable more small businesses to utilise the US Small Business Administration's (SBA) 504 Loan Program, which focuses on providing the long-term capital small businesses need for commercial real estate investments and job creation and retention," the investment bank said in a   statement.

The initiative, called the Morgan Stanley SBA 504 Program will be available through non-profit corporation Community Reinvestment Fund, USA, and CDC Direct Capital, a wholly owned subsidiary of CDC Small Business Finance, a certified development company that focuses on serving the financing needs of small businesses.

"By extending financing for small businesses to invest and grow, Morgan Stanley is reaffirming our commitment to put our financial capabilities to work in the service of the economic development of communities," said Ruth Porat, chief financial officer, Morgan Stanley.

CRF and CDC Direct Capital will work with a national network of financial institutions to facilitate the purchase by Morgan Stanley of existing and new loans collateralised by first liens on commercial real estate originated as part of the SBA 504 Program.  As cash-strapped small businesses finally can access the capital resources they need, they can reinvest in their businesses, creating jobs and helping build healthier communities.

"Morgan Stanley is working with the public sector to maximize the impact of the dollars it allocates towards economic development," said Mike Mantle, Senior Advisor in Morgan Stanley's Global Sustainable Finance Group.  "We are pleased to work with these long-standing industry professionals to respond to this critical need identified by community development leaders."

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more