The Obama administration has promised to fix many of the financial problems the United States is facing. Whether they will succeed is not for us to debate here. What is up for discussion is the recent boost in small business loans by JP Morgan Chase. They announced April 14, 2010 that they would be providing small business lending in the next few months to help boost this economic sector. JP Morgan is a New York bank with a large New Jersey presence.
The chief financial officer, Michael Cavanagh spoke about the move they would be making in a conference call. He stated their bank wants to get some small business loans going because there is a demand for them and it would help stimulate their lending activity. JP Morgan Chase is suffering from weaknesses in their loan portfolio meaning they have provided less loans this year than last year. This has been especially true for large corporation business loans.
Jamie Dimon also spoke about this announcement and the move the bank hopes to make. He stated that in the first quarter they offered $2.1 billion in small business loans, which doubles what they offered last year for small business loans. The bank has also begun a campaign to lend $10 billion in small business loans by the end of 2010. They are hoping to stimulate the economy even more by putting 9,000 people to work in order to handle the small business loans they hope to give out.
JP Morgan Chase is not the only bank hoping to increase business loans. The Obama Administration has asked numerous banks to try and seek out businesses worthy of small business loans to help them out. The lower and middle classes are the ones suffering from the recent economic downturn. It stands to reason that if someone can grow their business they may have a chance at surviving instead of closing their doors.
Based on this thought process, it is wise for small businesses that are stable to seek out business loans. The business loans should be geared more towards advancing the business and not getting further into debt. In other words a small business that is already suffering and cannot show an increase in sales for their yearly projections may not qualify.
The small business loans are being awarded more for increasing inventory, online presence, and even global market shares. For those who own a small business it is worth considering a loan and whether you would be able to make payments on that loan. If you have a good cause to take out a small business loan it could not be easier than now. The banks are more than willing to lend money to the smaller businesses. This does not mean it will be easy. There is still an application to fill out and be approved. However, if your company can show strong growth potential you should not have a huge problem in getting the money you require for that growth.
Four times already I called the bank today to know if the transfer has probably arrived. But the bank reply remains the same; not yet, there is no incoming transfer could be found this time. I started to become confused. The suppliers and my people are asking for their money. I know that the payday is due this weekend; but because of the transfer delay from my client, I could not do anything. Tomorrow is Friday and I am not sure if the transfer will arrive accordingly. This will keep me stuck on my chair; I definitely could not make payment for all people for the day. I must think fast to get out of this trouble.