BofA Commits $10 Million in Capital for Residents and Small Businesses Impacted by L.A. Wildfires

Rhea-AI Summary

Bank of America (NYSE: BAC) announced a $10 million capital commitment in zero‑interest loans to three west coast CDFIs to support housing, nonprofit facilities and small business recovery after the Eaton and Palisades wildfires on Dec 22, 2025.

The funding will support property acquisition, single‑family development, small business rebuild loans and low‑cost lending; the company also reported $3.5 million in philanthropic grants and plans to rebuild two destroyed financial centers.

Positive

• $10 million in zero‑interest capital to three CDFIs for wildfire recovery
• Funding supports small business loans of $10,000–$100,000 through RESTORE LA
• $3.5 million in philanthropic grants already distributed to local nonprofits
• Bank will rebuild destroyed financial centers in Altadena and Pacific Palisades

Negative

• None.

Key Figures

Zero-interest loans $10 million Capital committed via CDFIs for LA wildfire recovery

RESTORE LA loan size $10,000–$100,000 No-fee small business loans via Pacific Community Ventures

RESTORE LA rate 3% Interest rate on RESTORE LA Fund small business loans

CDFI investments $2 billion Loans, deposits, capital grants and equity across 250+ CDFI partners

Philanthropic grants $3.5 million Grants to local nonprofits for fire and business support

Client base Nearly 70 million US consumer and small business clients served

Retail financial centers Approximately 3,600 US retail financial centers operated

Verified digital users Approximately 59 million Digital banking users globally

Market Reality Check

$55.88 Last Close

Volume Volume 64,458,553 is 1.52x the 20-day average of 42,384,208 ahead of this community-support update. high

Technical Shares traded above the 200-day MA of 47.15, at a pre-news level of 55.27, near the 56.07 52-week high.

Peers on Argus

BAC was up 1.86% with key peers also positive: WFC +1.53%, C +1.47%, JPM +1.09%, RY +0.44%, HSBC +0.19%. The move occurred alongside broad strength in large diversified banks rather than isolated stock behavior.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	Preferred dividends	Positive	-0.5%	Board declared cash dividends on multiple preferred stock series for early 2026.
Dec 11	AI product update	Positive	+0.9%	AI-based CashPro Forecasting highlighted efficiency gains for over 3,000 corporate clients.
Dec 08	Benefits platform launch	Positive	-0.1%	Launched enhanced Workplace Benefits platform for small and mid-size business clients.
Dec 04	Card promotion	Positive	+0.1%	Introduced FIFA World Cup 2026 custom card design and new cardholder bonus offer.
Dec 02	Macro outlook	Positive	-0.1%	BofA Global Research forecast stronger 2026 economic growth and EPS expansion.

Pattern Detected

Recent company news has generally been positive, yet price reactions often showed small, mixed moves, with more instances of mild divergence than clear alignment.

Recent Company History

Over the past month, Bank of America has issued several positive updates, including preferred stock dividends on Dec 16, an AI-powered CashPro Forecasting enhancement helping over 3,000 companies, and new Workplace Benefits solutions launched on Dec 8. Marketing and client-engagement initiatives included a FIFA World Cup custom card and a BofA Global Research outlook calling for stronger 2026 growth. Despite the constructive tone, price reactions ranged from about -0.47% to +0.89%, indicating modest and sometimes contrary trading responses to good news.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-10-01

An active S-3 shelf filed on 2025-10-01 allows Bank of America and BofA Finance LLC to issue various securities, including debt, warrants, preferred stock, depositary shares and common stock. The filing, which has been used in at least 10 recent 424B2 offerings, provides structural flexibility for future capital markets activities, subject to the terms and effectiveness status disclosed.

Market Pulse Summary

This announcement highlights Bank of America’s role in disaster recovery, including $10 million in zero-interest CDFI loans and $3.5 million in philanthropic grants to support LA wildfire-impacted residents and businesses. It builds on a broader $2 billion CDFI commitment and a large client base of nearly 70 million. In evaluating the news, investors may track execution of these relief programs, ongoing use of the active S-3 shelf for securities issuance, and how such initiatives integrate with broader strategic priorities.

AI-generated analysis. Not financial advice.

Funding to Three CDFIs Provides Additional Small Business Lending, Housing Assistance as Fire Recovery Continues

LOS ANGELES, Dec. 22, 2025 /PRNewswire/ -- As Los Angeles continues its efforts to rebuild, Bank of America is announcing $10 million in zero-interest loans to Community Development Financial Institutions (CDFI) for ongoing housing, nonprofit facilities, and small business assistance. The loans will be managed through three west coast CDFIs involved in the region's disaster recovery efforts following the devastating Eaton and Palisades fires.

• Clearinghouse CDFI (CCDFI) will use its fire-designated funding to finance property acquisition or single-family home development undertaken by nonprofit partners. It will also make capital available to small businesses for rebuilding expenses that outpace insurance proceeds and for the funding to resume operations.
• Genesis LA makes loans to support homeownership, economic development, and nonprofit facilities in the Altadena and Pasadena areas. It is working with various Altadena stakeholders to acquire vacant lots for redevelopment, with nonprofit developers working with local residents to rebuild multiple homes simultaneously, and local businesses rebuilding their storefronts.
• Pacific Community Ventures' RESTORE LA Fund offers no-fee loans to small businesses of $10,000–$100,000 at a 3% interest rate that can be used to replace damaged property or equipment, support worker retention or payroll expenses, and fund other recovery needs. Businesses also receive pro bono technical assistance and access PCV's climate resilience lending program.

"Having extensive experience supporting clients and communities through various disasters over the years, Bank of America is uniquely positioned with the expertise, capital and connections to support LA's next chapter. Today's $10 million capital investment will be allocated by our CDFI partners who have been on the ground supporting these impacted communities. As Angelenos continue our long-term recovery following the January fires, our zero-percent capital helps the CDFIs offer lower interest financing for families and business owners to recover and rebuild," said Raul Anaya, Head of Local Markets Strategy and President, Bank of America Los Angeles. 

As the nation's largest private CDFI investor, with $2 billion in loans, deposits, capital grants and equity investments across more than 250 CDFI partners, Bank of America this year began to utilize its CDFI lending platform to allocate capital for disaster recovery needs in Asheville following Hurricane Helene and following the floods in Texas Hill Country. 

These capital investments by Bank of America build on the company's ongoing efforts to address the evolving needs of impacted clients and communities, most recently announcing its Rebuild Solution to help qualifying mortgage clients rebuild their homes. The bank will also rebuild its destroyed financial centers in Altadena and Pacific Palisades; and continues to award grants. So far, $3.5 million in philanthropic grants have been distributed to local nonprofits for fire and business support, in addition to thought leadership and employee volunteerism provided to foundations and nonprofits.

For more information on Bank of America's relief efforts, go to BankofAmerica.com/LARebuild.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million consumer and small business clients with approximately 3,600 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Reporters may contact

Colleen Haggerty, Bank of America
Phone: 1.213.621.7414
colleen.haggerty@bofa.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/bofa-commits-10-million-in-capital-for-residents-and-small-businesses-impacted-by-la-wildfires-302647403.html

SOURCE Bank of America Corporation

FAQ

What did Bank of America (BAC) announce on Dec 22, 2025 for L.A. wildfire recovery?

Bank of America committed $10 million in zero‑interest loans to three CDFIs plus $3.5 million in philanthropic grants to support housing and small business recovery.

How will BAC's $10 million be used to help small businesses after the Eaton and Palisades fires?

The capital is allocated to CDFIs to fund rebuilding costs that exceed insurance, resume operations, and provide loans of $10,000–$100,000 via RESTORE LA.

Which CDFI programs will receive BAC capital for wildfire relief on Dec 22, 2025?

Clearinghouse CDFI, Genesis LA, and Pacific Community Ventures' RESTORE LA Fund will receive the zero‑interest capital for housing and small business recovery.

Does BAC plan to rebuild any bank locations damaged in the L.A. wildfires?

Yes. Bank of America stated it will rebuild destroyed financial centers in Altadena and Pacific Palisades.

What terms accompany BAC's recovery loans allocated to CDFIs?

Bank of America provided the capital as zero‑percent loans to CDFIs; RESTORE LA offers small business loans at 3% interest and no fees for $10,000–$100,000.

Where can investors find more information about Bank of America's L.A. rebuild efforts (BAC)?

The company directs interested parties to its L.A. rebuild information page at BankofAmerica.com/LARebuild.