| The first business loans possibly date back to ancient | | | | were given the opportunity to finally borrow money. |
| Greece. One of the most important services offered | | | | After the earthquake that destroyed much of the city |
| by Greek bankers was the lending of money to | | | | in 1906, Giannini once again came through; giving loans |
| finance the carriage of freight by ships. They also lent | | | | to people to rebuild their lost businesses. By the mid |
| money for mining, and construction of public buildings. | | | | 1920's, he owned the third largest bank in the nation. In |
| Later, during the middle ages, the Jews fled for their | | | | 1930, he formed the Bank of America, which withstood |
| lives to Italy, where they encountered grain farmers | | | | the Great Depression, funding large industrial and |
| looking for money to help support their businesses. The | | | | agricultural interests, as well as building California's |
| Christians, who were the current settlers of Italy, were | | | | movie industry and even loaning the money to the city |
| forbidden the sin of usury, or charging a fee for the | | | | for the building of the Golden Gate Bridge. |
| use of money. Today, the word usury is used to | | | | One of the most important types of business loans |
| describe placing unreasonable interest rates on | | | | available to Americans are backed or guaranteed by |
| borrowed money. Therefore, this opened the door for | | | | the American government. These loans are available |
| the newcomers, the Jews (who were merchants), to | | | | to small businesses and ordinary people that may not |
| lend money to farmers. The term "merchant bank" | | | | qualify for other business loans. The Investment |
| derives from this origin and was one of the first banks | | | | Company Act of 1958 established the Small Business |
| that offered "business" loans to the grain farmer. | | | | Investment Company Program. This program enables |
| Merchants remained the main source of funding for | | | | the government to regulate and provide funds for |
| trade and business loans well into the 1700's. | | | | privately owned and operated venture capital |
| In 1781, the first commercial bank received a charter of | | | | investment firms. These firms then in turn provide loans |
| incorporation in North America. They gave short-term | | | | to high-risk small businesses. Since 1958, the |
| credits to American merchants, who then extended | | | | government by means of the Small Business |
| them to wholesalers of their imports, and the | | | | Administration has put nearly $30 billion dollars into the |
| wholesalers passed them on to urban retailers, country | | | | hands of business owners to finance their growth. |
| stores, and peddlers. By 1789, the nation boasted three | | | | Currently, the SBA is working with minorities and |
| commercial banks. | | | | women regarding their business ventures ( |
| One of the most famous men noted for loaning the | | | | Throughout history, merchants, bankers and |
| "little man" money for business is A.P. Giannini. | | | | government agencies have been keeping the |
| Historians have referred to him as "America's banker". | | | | entrepreneur's dreams alive by allowing them to |
| Up until this time, most banks would only loan money to | | | | borrow capital based upon an idea, service, or product. |
| those that were wealthy. In 1904, Giannini opened up | | | | These dreams are still alive and well today, and are |
| the Bank of Italy in San Francisco. Hard working | | | | being realized every day thanks to governments and |
| immigrants looking to open businesses and buy homes | | | | bankers alike. |