JPMorgan Chase has indicated that the economy is getting better thus making it easier for them to give more loans to small businesses. Lending jumped 30 percent in Ohio and the US has seen 40 percent surge last year.
Business owners seem to be optimistic and are using Chase loans so as to invest in businesses and growth of State’s economy. Chase the third-largest bank by deposits stated that it loaned out $505 million to 9,800 small businesses in Ohio last year. Annual revenue for businesses is less than $20 million.
Nationwide small business lending increased to more than $10 billion last year whereby loans have been provided to 275,000 businesses. Chase provided cash for working capital, commercial mortgages, expansion projects, lines of credit and business credit cards. An increase in lending to small businesses in Ohio is also reported by US Bank and Huntington Bancshares. It is important to track lending to small businesses for their role in creating jobs.
Small businesses generate 44 percent of total US payroll and they also employ half of private sector workers. During recession many banks had cut off lending and were compelled to raise billions of dollars to help finance businesses.
Chase is No. 2 in Ohio in terms of number of SBA loans made. Huntington Bancshares is top SBA lender in Ohio. It made 343 loans of $24.6 million in first three months of 2011. That is more than half of the loans made in the state. Several factors go into increasing lending to small businesses. Chase credits factors like 500 business bankers and creation of second look program to provide credit incase a loan got declined. Bank approved $283 million of loans.
Chase also launched a new program that assures lower interest rate to small businesses on new lines of credit so as to hire new workers.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to