Despite complaints from small business owners, Bank of America is calling recent reports that it is cutting or closing credit lines for all of its small business clients "speculation."
The Charlotte, N.C.-based bank said it has put in a maturity date and annual renewal process in lines of credit, which are considered standard practices. The credit lines previously didn't include these standard practices, "and the changes better align the terms and conditions," the bank said.
"These changes were explained in letters to affected customers at least one year in advance of the new maturity date," said Jefferson George, a BofA spokesperson, in a Jan. 4 email. "This allowed time for us to work with all affected clients to explore other products available to best meet their business needs."
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