Merrill to Issue Loans for Minority Areas

Merrill Lynch & Co. said it earmarked $500 million to provide small-business loans and financial support to minority communities in California.

The company said it will launch the program, dubbed the California Partnership for Economic Achievement, with the nonprofit Greenlining Institute. It added that the initiative is the first of its kind by a Wall Street investment firm.

Merrill will allocate $490 million for lending to small businesses in what it called “underserved areas” as well as $10 million for efforts to promote financial literacy, diversity and homeownership.