Bank of America says it will increase the amount it spends on small, medium-sized and diverse businesses, and pledges to purchase $10 billion in products and services from them over the next five years.
A recent study by the National Federation of Independent Business found that a lack of business was the biggest concern for small companies.
“Our clients are telling us that until they see sales pick up, they are reluctant to hire and invest in their businesses,” said David Darnell, president of Global Commercial Banking.
Bank of America’s CEO said the pledge was “the right thing to do” and hoped other companies would take similar steps to encourage job growth and business formation.
“We see an opportunity to expand on that mission by helping all small and medium-sized businesses create more jobs in this challenging economy,” said Brian Moynihan, Bank of America’s president and chief executive officer.
The most recent unemployment numbers showed a drop in unemployment fueled by a surge in hiring temporary workers for the U.S. Census. Private employers added 41,000 jobs, marking the fifth straight month of job growth.