Small Business Lending Laws

Summary

There is no federal law mandating banks to lend to small businesses. However, the Community Reinvestment Act encourages banks to meet community credit needs, and SBA Loan Programs guarantee loans made by banks to small businesses. For specific information about small business loans in Colorado, consider consulting a local attorney or financial advisor.

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Is there a federal law that says banks have to fund small businesses
In the United States, there is no federal law that mandates banks to fund small businesses. However, there are programs and regulations to encourage and support such lending:
- Community Reinvestment Act (CRA): Encourages banks to meet the credit needs of all community segments.
- Small Business Administration (SBA) Loan Programs: Guarantees loans made by banks to small businesses.
Do you need specific information about small business loans in Colorado?