Bank of American has signed a $500 million loan with StartUp Business Loans.
The deal will help the financial institution tap into the rapidly growing “loan for equity” business loan market, according to the bank.
StartUp will finance the loans with a combination of loans and equity.
The loan will allow StartUp to tap into its existing financing network and to accelerate its growth and success, the bank said in a statement.
The loans are expected to close in the fourth quarter of 2018.
Bank of Americans also said it is adding a $100 million credit line to its online mortgage business loan program.
The bank said the line, which will be available to small and mid-sized companies with an annual revenue of at least $500,000, will help accelerate lending.
Start-Up is an online mortgage company, providing borrowers with a home equity line of credit for home equity loans with an interest rate of 3.75% for a period of one year.
The company is focused on borrowers who are not located in the United States.
The new financing is part of a broader strategy to boost its lending business.
Earlier this month, Bank of Americas announced that it is offering to pay a $50 million credit guarantee to start-up company FICO.
Bank Of America also announced in January that it was raising $100m to help the struggling mortgage lender, Home Depot, expand into new areas.
The lender recently agreed to a $1.2 billion financing agreement to expand its mortgage servicing capabilities in the Northeast and Midwest.