BofA Community Development Bank hits $500 million; Start-up business in Texas helps bank reach milestone.

HOUSTON--(BUSINESS WIRE)--Dec. 27, 1995--A small start-up business that will create up to 20 new jobs in rural Texas has helped put Bank of America Community Development Bank over the $500 million mark in lending for 1995, the first time the bank has reached the half-billion-dollar level since it was created five years ago.

"We are very excited to reach this milestone of $500 million in loans in the fifth year of doing business," said Mike Mantle, president of Bank of America Community Development Bank. "We're especially excited because the loan that put us over the top represents one of our key markets -- a start-up company that will provide new jobs and has strong growth potential."

The benchmark loan was made to Indian Mill and Lumber, Inc. of Groveton, Texas, 90 miles outside Houston. When it begins operation, Indian Mill will provide approximately 20 jobs in the Groveton community, which has a population of 1,300. The loan from the Community Development Division of Bank of America, FSB, an affiliate of Bank of America Community Development Bank, will be used for equipment purchase and working capital.

The Houston office of the Community Development Division provided Indian Mill and Lumber with a loan through the Small Business Administration's Preferred Lender program. Indian Mill and Lumber was founded by Carl Cook, Carl Edward Walker, and Lucie Jolene Droddy Taylor and will manufacture specialty scaffolding that is weather-resistant, has an anti-slip surface, and costs less than existing scaffolding on the market.

Through Community Development Division offices in Houston, San Antonio and Irving, Bank of America has provided $13 million in SBA loans in Texas through the first 11 months of 1995.

"Bank of America is strongly committed to the growth of small businesses in Texas, and the Community Development Division, working with the SBA, allows us to reach a very important market segment -- those businesses that have difficulty qualifying for conventional small business financing," said Ron Biagi, CEO of Bank of America Texas.

BofA Community Development Bank was formed as a subsidiary of BankAmerica in 1990 to provide the California market with government- assisted small business loans and financing for multifamily, low-income housing.

In 1994, it expanded its service area in 10 other western states and Chicago, Ill., where it established offices of Bank of America, FSB (Federal Savings Bank), and this year it opened a new office in Washington, D.C.

In 1995, the bank has generated approximately $175 million in small business loans and $325 million in loans for low-income multifamily housing.

CONTACT: Bank of America

Randy Hicks, 214/444-6800

Russ Yarrow, 415/953-1411