Congresswoman Barbara Lee, Bank of America, and the East Bay Conversion and Reinvestment Commission Announce Funding for Businesses At Former East Bay Military Sites.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 23, 1999--

At the former Alameda Naval Base, which once employed thousands of workers, Congresswoman Barbara Lee, the East Bay Conversion and Reinvestment Commission (EBCRC) and Bank of America, today announced an innovative $1 million revolving loan fund aimed at promoting the growth of small businesses and economic development on former military sites.

The fund, the Defense Conversion Revolving Loan Fund (DC RLF), is the first of its kind in the nation. It will be administered through the EBCRC, which was established by Congress in 1993 to meet the challenges created by the closure of six area military installations in Alameda County, including three in Oakland. The goal of EBCRC is to enable those individuals displaced and unemployed by the closures to benefit from the new economic growth created by converting the military bases to civilian use.

The DC RLF will make available secured and unsecured lines of credit, term loans, and commercial real estate loans at below market interest rates and longer terms. The program will make loans from $5,000 - $100,000, and will focus on businesses owned by minorities, women or veterans, as well as other small businesses. Several types of companies are eligible to apply for a DC RLF loan: -0-

--   Businesses owned by former Alameda County military base workers
     who are clients of the Workers to Business Owners Program (WBO)

--   New or existing small businesses located or locating on a former
     military base in Alameda County,

--   Alameda County-based suppliers to former military bases whose
     businesses were adversely impacted by the closure and realignment
     of the bases.

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During the event Bank of America presented Congresswoman Lee and David Wilson of EBCRC with a symbolic $650,000 check, representing a three-year commitment to help capitalize the loan fund and provide operating costs. Previously, the U.S. Department of Commerce, Economic Development Administration (EDA) committed $900,000 to help capitalize and operate the fund.

"The Defense Conversion Revolving Loan Fund's mission is to stimulate new economic activity and create jobs at former military bases in Alameda County. Bank of America's partnership with the EBCRC sends a strong message that private capital markets are ready to help finance redevelopment at former military bases," said Congresswoman Barbara Lee.

"The East Bay has been extremely hard-hit by these base closures and Bank of America is pleased to be working with Congresswoman Lee and the EBCRC to provide the funding necessary to help establish and support viable businesses in areas that have been affected," said Connie Beck, President of Northern California Banking, Bank of America. "Small businesses are one of the most dynamic sectors of our economy and we are committed to helping them thrive," she added.

Dave K. Wilson, Chair and Principal Administrative Officer of the East Bay Conversion and Reinvestment Commission said, "The Defense Conversion Revolving Loan Fund will provide qualified businesses with loans, and the cities of Alameda and Oakland with another tool to attract new business and jobs to Alameda Point, the Oakland Army Base, the former Fleet and Industrial Supply Center Oakland, and its annex in Alameda, and the former Oak Knoll Naval Hospital in Oakland."

The DC RLF will begin operating in the Fall of 1999. For more information on obtaining loans call [phone]. EBCRC is a regional body with representation from elected officials, the private sector, national laboratories, the University of California, labor, environmental and community groups. It provides a variety of technical assistance to the communities dealing with these base closures. Since 1993, EBCRC has helped to bring over $50 million of federal support into Alameda County to support economic development in the wake of the closures.

Bank of America is the national leader in community development lending to small business. Earlier this year, Bank of America received the Excellence in Lending Award for Northern California from the San Francisco District Office of the Small Business Association, in recognition that the bank made more government-guaranteed loans in California and the San Francisco district than any other lender in 1998. In June, Bank of America announced a partnership with the Small Business Administration and the Southeast Asian Community Center, to create the San Francisco Microloan Program. The program provides loans averaging $10,000 to new and existing businesses in San Francisco, with a focus on businesses that serve low- to moderate-income census tracts or are owned by minorities, women or veterans.

www.bankamerica.com