Lending is still slow for banks in the US. Banks are trying to ease up on their standards for lending for select loans but banks note that lending will not begin to increase until consumers and businesses regain confidence. Companies need to hire and consumers need to spend. There are some good signs that efforts by the federal government to stabilize bank lending is working. For the first time since 2006, there has been a decline in the number of loans that have gone three months or more passed due. Additionally, the amount of loans being charged off by banking institutions has been on the decline for most of the major loan types.

Banking profits totaled $21.6 billion in the second quarter, which hare the highest quarterly earnings since the crisis in the industry began. The FDIC is reporting that two-thirds of the banks in the US are reporting improvement each quarter.

Right now the list of troubled banks stands at 829 which is the highest since 1993.  Previously only 53 banks were at risk of failure during the previous quarter. One year ago, the FDIC’s list included 416 banks on the watch list. Banks on the list are considered to be at risk of failure but most of the lenders have actually hit a point of failure.

829 US Banks Still At Risk Says FDIC was created by and is property of American Consumer News.

“We started hearing that the availability of money was tied up because of the lack of reserves and thought this [initiative] was the best way to address it,” said David Darnell, president of global commercial banking at Bank of America.

“Money being tied up” is an understatement. Across the entire country, banks of all sizes have almost completely stopped lending to small businesses due to the struggling economy. With grants from Bank of America, the non-profit micro-lenders have money to support any loan losses which may result in their lending activities, and can now offer small business loans when they would otherwise be unable to.

The loans that the micro-lenders will give out from the grant money will average $13,000 per loan, which means the $10 million contribution from Bank of America will help about 8,000 business owners get the funding they need to start, expand or recover their businesses.

Bank of America’s grant may just be the catalyst the economy needs to get moving again. Financial experts and even our country’s president have said that small businesses are key to the success of the economy. If other large banking institutions follow Bank of America’s lead with a large grant used to fund multiple loans, it’s possible that the economy could start turning around quickly.

A spokesman from Bank of America says they hope the grant money will be in the hands of the micro-lenders within 12 months time.

Bank of America (NYSE: BAC) Gives Back With $10 Million in Grants was created by and is property of American Consumer News.

Citigroup is working in association with the Calvert Foundation and Opportunity Finance Network to help cover financing of both businesses and community development. The Calvert Foundation is a non-profit that manages money totalling more than $200 million that came from thousands of different investors. Opportunity Finance Network has also brough in more than $23.5 billion in financing since 2008.

Citigroup is set to provide $199 million in capital for small businesses using a combination of loans and equity. The other two grous will bring $1 millions to complete the balance. Vikram Pandit, Citigroups Chief Executive stated that small businesses, community service organizations, and other groups do not have the sufficuent access to the credit they need to keep growing.

The Communities at Work Fund will serve low income areas hand have been working for over 30 years to create economic opportunities in underserved communities by providing financing. They will provide financing to both for profit and nonprofit  Community Development Financial Institution (CDFI) Loan Funds that will then lend to local low-income communities businesses. The Fund will help maintain and grow businesses, drive new job creation and contribute to the economic recovery of communities can not secure financing by traditional financial institutions. To date, the loans have assisted more nearly 50,000 small businesses by loaning out a total of $15.9 billion. CDFI Loan Funds net charge-offs were lower than FDIC insured instituitons in both 2008 and 2009.

Andrew Ditton, Co-Head of Citi Community Capital stated “Citi is delighted to partner with Calvert Foundation and Opportunity Finance Network to deliver new liquidity for CDFIs. They are leaders in the field of community development finance with a proven expertise in responsible and profitable lending to those communities most in need of capital.”

As lending requirements have become much stricter, many entreprenuers can no longer survive in a community business. Once the businesses begin to fail, the community as a whole suffers. Citigroup is looking to strengthen both the businesses, their owners, and the communities in which they live.

Citigroup (NYSE: C) Ready to Lend To Small Biz was created by and is property of American Consumer News.

How can it work against you? Here are just some of the current trends in social networking sites:

Hiding From a Debt? They’ll Find You
Collection agents, not always known for their above-the-line practices, will often scour the internet in search of your contact information. Since many debtors will refuse phone calls or ignore written correspondence, they stand a good chance that active social media players will be online. If you are posting about the new outfit you bought or the great vacation you just took, you can bet they’ll step up their aggressive collection tactics since they know you have the money. While laws will not allow collection agents to contact you through your profile, some will still disguise themselves in order to secure good contact information for you. Some especially unethical agents will even sabotage you on your home page.

Need a Loan? Good Luck
Even creditors have been using social networking searches to find out what kind of risk you might be. Considering a personal loan or a mortgage? Banks and other lenders are getting very tight with their money and outside of your credit score they want to know what kind of person you are and what risk you might pose to defaulting on the loan. While there is no scientific formula for a lender to assess your Twitter account, they may be scared enough about what you say to refuse your loan.

Loose Lips? Lose Your Job
Potential employers can easily do searches on candidate names since social media profiles are often at the top of search engine results. Employers will be looking for negative comments about your current employer, coworkers, and other job-related activities. They can also look at the times you post to see how hard you are really working each day. If you have naughty pictures associated with your profile, they too can cost you a potential position in a company.

Gone Phishing – Took All Your Money
Since people often have no problem typing in a ton of personal information on their home page because they want everyone to know how well they are doing in life, scammers have made a happen of targeting social media users. It’s nice to let friends know who your grandma is but providing her last name will give scammers insight as to what your mother’s maiden name is. This is one of the top security questions people have to answers to gain access to their financial and personal accounts.

Ultimately it is up to consumers to use common sense when it comes to posting information that essentially the world can see. Protecting your information can sometimes be as easy as not providing any. Remember that while your friends can see and appreciate your updates, the whole world can be watching.

Social Networking Can Damage You Outside Your Social Circle was created by and is property of American Consumer News.