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Thursday, November 12, 2009

Bank to Expand Small Biz Lending

The story on credit for small business has been a tough one for some time now. Either small businesses are not expending and borrowing due to their economic outlook, or they are finding it hard to get credit.

So, a November 10 Reuters report is a welcome signal.

Reuters noted that JPMorgan Chase & Co. is going to increase its small business lending by $4 billion this year, while adding 300 bankers to serve the small business community. In total, the plan is to boost lending by $10 billion for firms with annual sales of less than $20 million, with 325 new bankers targeted at this group.

For good measure, Reuters noted that JPMorgan back in the summer repaid the $25 billion it received in TARP money.

These are positive developments in a tough climate for small business. Small business is critical to our economic recovery, not government stimulus or bailout efforts. Indeed, the key right now is to get bad government policies out of the way, along with the commensurate costs and uncertainties, so the private sector can get to work building, investing and innovating. Efforts like that announced by JPMorgan are big plusses.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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