Chase Promises To Boost Lending To Small Businesses By 20 Percent
Written by Jenna Weiner
Chase announced Tuesday that it would boost 2011 small business lending to $12 billion.
As the debate about small business access to financing continues in business news for entrepreneurs, one large institution has announced that it's upping its lending requirement to the sector.
Chase, the bank division of JP Morgan Chase, has made a commitment to improve its 2010 lending by 20 percent, equating to $12 billion to American small businesses in 2011.
In fact, Chase, in the first quarter of 2011, increased its lending to small businesses, which it defines as those companies with annual sales of less then $20 million, by 64 percent. Additionally, it approve more than 100,000 new loans for working capital, expansion, commercial mortgages, lines of credit and business cards during this period.
"Small business owners are not only our neighbors but also the entrepreneurs that hire half of the employees in the United States. It's critical that we support small businesses as they continue to fuel the economic recovery across the country," said Michael Cleary, CEO of business banking in retail financial services.
While the announcement by Chase may provide relief for some small business owners, lending to this sector continues to be troubled. A recent survey from Biz2Credit found that approval rates for loans by large banks fell from 10.6 percent in the fourth quarter to 9.8 percent in the first quarter, Rohit Arora wrote for New Jersey Newsroom.
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