Bank of America Corp. said it will provide a "limited amount" of additional loans to a Chicago door-and-window factory, just a day after sit-in protests escalated into an intense labor fight that threatened to have financial ramifications for the Charlotte company.

On Monday, a day before being arrested on unrelated corruption charges, Gov. Rod Blagojevich of Illinois called on state agencies to suspend business with B of A after it allegedly cut off financing to Republic Windows and Doors.

Last week the factory notified its nearly 300 employees, about 80% of which are unionized, that it would close its doors by Friday, because B of A had told the company its financing would be cut off.

B of A expressed concern Tuesday about Republic's failure to pay their employees the claims to which they are legally entitled. In addition, B of A said it is prepared to make the additional loans even though it is not obligated to pay the employees or make additional loans to Republic.

The Chicago city government also threatened to stop doing business with B of A.

Gov. Blagojevich made his comments a day after President-elect Barack Obama offered support for the employees, saying at a news conference that they are "absolutely right."

Union members, B of A representatives, and factory managers met Monday afternoon to try to reach a settlement.

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