NEW YORK, November 9, 2009 - Chase announced today that it plans to increase its lending to small businesses by up to $4 billion in 2010, boosting expected new lending to about $10 billion to this vital segment of the U.S. economy.
This will provide businesses with increased access to working capital, term loans for expansion, commercial mortgages, lines of credit, and business credit cards. While the $4 billion in additional credit will be available to qualified businesses with annual sales of less than $20 million, the majority of new loans will be targeted to companies with sales of less than $10 million.
Chase has $29 billion in outstanding balances in loans, lines and credit card balances to businesses with annual sales of less than $20 million. Small businesses are typically served by specially trained business bankers, and generally will receive a credit decision within a week of application.
Chase also will hire 325 additional small business bankers - most of them working from Chase bank branches to help reach small businesses with annual sales of less than $10 million. That adds 17% more bankers to the 1,900 bankers who currently support the less than $10 million segment.
"We will provide more credit - and more one-on-one advice -- to small businesses at this crucial time because they are so important to the U.S. economy," said Charlie Scharf, head of Retail Financial Services at Chase, part of JPMorgan Chase & Co. "We urge small businesses owners to use the additional capital to expand and create jobs, and spur economic growth.
"We will continue to follow disciplined underwriting standards to confirm the businesses can afford the financing over the long term, he said. "Obviously, our new loan volume will depend on demand from qualified businesses."
In addition, Chase will:
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), which operates more than 5,100 branches and 15,000 ATMs nationally under the Chase brand. Chase has 146 million credit cards issued and serves consumers and small businesses through bank branches, ATMs and mortgage offices as well as through relationships with auto dealerships and schools and universities. More information about Chase is available at www.chase.com.