In 1781, the first commercial bank received a charter of incorporation in North America. They gave short-term Credits to American merchants, who then extended them to wholesalers of their imports, and the wholesalers passed them on to urban retailers, country stores, and peddlers. By 1789, the nation boasted three commercial banks.

One of the most famous men noted for loaning the “little man” money for business is A.P. Giannini. Historians have referred to him as “America’s banker”. Up until this time, most banks would only loan money to those that were wealthy. In 1904, Giannini opened up the Bank of Italy in San Francisco. Hard working immigrants looking to open businesses and buy homes were given the opportunity to finally borrow money. After the earthquake that destroyed much of the city in 1906, Giannini once again came through; giving Loans to people to rebuild their lost businesses. By the mid 1920’s, he owned the third largest bank in the nation. In 1930, he formed the Bank of America, which withstood the Great Depression, funding large industrial and agricultural interests, as well as building California’s movie industry and even loaning the money to the city for the building of the Golden Gate Bridge.

One of the most important types of Business Loans available to Americans are backed or guaranteed by the American government. These loans are available to small businesses and ordinary people that may not qualify for other business loans. The Investment Company Act of 1958 established the Small Business Investment Company Program. This program enables the government to regulate and provide funds for privately owned and operated venture capital investment firms. These firms then in turn provide loans to high-risk small businesses. Since 1958, the government by means of the Small Business Administration has put nearly $30 billion dollars into the hands of business owners to finance their growth. Currently, the SBA is working with minorities and women regarding their business ventures.

Throughout history, merchants, bankers and government agencies have been keeping the entrepreneur’s dreams alive by allowing them to borrow capital based upon an idea, service, or product. These dreams are still alive and well today, and are being realized every day thanks to governments and bankers alike.

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