Bank of America Cuts Off Credit to Some Small Businesses

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Photo: Karen Bleier/2008 AFP

Bank of America is severing lines of credit for some of its small-business owners and calling due full payment on existing debts. Absent that, the bank is offering businesses abbreviated repayment plans at high interest rates. According to a spokesman for the bank, which is attempting to raise capital and minimize risks, changes will apply to recipients of only a "very small percentage" of its 3.5 million non-mortgage loans. Happy New Year.