BANK OF MONTREAL TARGETS SMALL BUSINESSES
By Adnews Staff
The Bank of Montreal has launched a fixed-rate, low-interest lending program for small businesses in a bid to increase it's market share of loans in this sector. The company has earmarked $1 billion in new funds for the program that will guarantee low-interest rates for the first year of three-to five-year loans. After the first year, rates will rise to a predetermined higher rate usually about 4% above the first year rate. The program is expected to end in January, 1998. The bank will wait a couple of months before it decides on whether to advertise the program or not. Currently, it will rely on its existing customer base and account managers. Advertising for The Bank of Montreal is done by Vickers & Benson Advertising of Toronto.