Lending Expansion: JPMorgan Signals Focus on Small Business Growth
JPMorgan Chase (JPM.N), is planning a significant increase in loans to small businesses in coming years as part of a plan aimed at boosting growth in local U.S. economies.
JPMorgan’s goal is to increase its small business clients from 7 million to 10 million as part of a program announced Tuesday named the American Dream Initiative, which also includes goals for boosting affordable housing, healthcare access and workforce training.
The bank expects to lend $80 billion to small businesses directly or through community development financial institutions or federal small-business programs over the next 10 years. It also aims to expand a coaching program to reach 115,000 small business owners, offering advice in areas such as payroll, cash flow management, healthcare and retirement plans for employees.
“The majority of these loans will be commercial, at market rates, so we can grow our business with small and medium companies in a sustainable way,” said Ben Walter, CEO of Chase Business Banking, adding that there is a smaller charitable portion of the program.
JPMorgan will hire 1,000 additional small-business credit officers and 150 senior business consultants to work in the branches, with emphasis on specific geographies including the state of Alabama and metro areas including Philadelphia, Atlanta, Los Angeles and San Francisco.
“The American Dream is alive, but it’s slipping out of reach for too many people – and for future generations,” said Jamie Dimon, chairman and CEO of JPMorgan Chase, in a statement, adding that targeted initiatives may expand economic benefits to more people.
One of the key states for the program is Alabama, Walter said. The company’s clients in the state include Auburn University, the University of Alabama, Children’s Hospital of Alabama and Infirmary Health System. JPMorgan is also financing infrastructure such as the West Alabama Corridor highway project and aims to open new branches, with a goal of 35 in the state by 2030.
This article was first reported by Reuters
