New York City-based financial services giant JPMorgan Chase announced Tuesday it plans to devote $12 billion in lending to small businesses this year, marking a 20 percent jump over last year.
The nation's second largest bank also announced that it became the No. 1 lender of Small Business Administration-backed loans last year and increased its lending to small firms - defined as those pulling in less than $20 million annually - in the first quarter of 2011 by 64 percent.
"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.
Last year, Chase Bank announced it has exceeded its lending goals to the sector, surpassing $10 billion.
While the announcement is being heralded by small business advocates, many continue to bring up the question of the credit market and how much the sector is really impacted by it.
Some point out that only the top entrepreneurs forming an LLC in New York, for example, meet all their lending needs, while less-promising or even average startups continue to struggle accessing credit.
Tags : financial management, ny, small business management
Posted: Apr 26th, 2011