Financial services giant Morgan Stanley is the latest institution to toss a hat into the small business investment ring, as the New York City-based firm announced the launch of a new program that will provide up to $500 million in credit to small businesses nationwide.
The Morgan Stanley SBA 504 Program will seek to provide long-term capital to small companies with the intention of boosting investment and job creation and helping entrepreneurs form an LLC in New York.
"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 Morgan Stanley CFO Ruth Porat.
Earlier this week, Bank of America announced it provided more than $18 billion in credit to small businesses last year, reflecting an ongoing effort among large institutions to invest in a sector that employs nearly half of the private U.S. workforce.
But others analysts have questioned how such companies define small businesses. Angus Loten wrote in the Wall Street Journal this week that, while lending to small businesses has indeed grown, it is only the "biggest and best" that are receiving credit, while average small companies have been forced to provide substantial collateral in exchange for loans.
Tags : financial management, ny, small business management
Posted: Feb 10th, 2011