JPMorgan to Add 3 Million Small Business Clients in $80 Billion Push

(P1) JPMorgan Chase, the largest bank in the US, on Tuesday announced its "American Dream Initiative," a plan to add three million new small-business customers and deploy an additional $80 billion in credit to them over the next 10 years. The initiative aims to address what CEO Jamie Dimon sees as growing economic stagnation and wealth inequality in the country.

(P2) "We want to serve more and more small businesses to help them grow and thrive in their local communities, employ more people and drive economic success in their communities," Ben Walter, CEO of Chase Business Banking, said in an interview with FOX Business.

(P3) The bank plans to grow its small business client base from seven million to 10 million. A key part of the strategy involves nearly doubling its free "Coaching for Impact" program from 87 to 150 coaches and increasing the number of graduates from 12,000 to 115,000 over the next decade. The firm will also expand its service offerings, adding payroll services later this year to its existing 401(k) and invoicing products.

(P4) The initiative represents a significant long-term commitment to what Walter calls "the small business ecosystem in America," which is responsible for creating two out of every three new private sector jobs. The move comes as Dimon has become more vocal about his concerns for the US economy, recently stating his frustration that America has "become like Europe, we’re unable to move and change."

The "American Dream Initiative" will be co-led by Jennifer Piepszak, the bank’s chief operating officer, and Tim Berry, its head of government relations. While the bank acknowledged that many of these efforts are an expansion of existing programs, the ambitious new goals are designed to accelerate their impact.

"When we think about the impact that we’ve had locally in a place like Detroit, we know that that success can be replicated in other places,” Piepszak said, referencing the bank's targeted investments in specific cities.

Coaching and Capital Expansion

The initiative's core is the pairing of direct financial support with education. The $80 billion in credit will be deployed over the next decade through a combination of direct loans and support for community-oriented banks and investment funds. The expanded coaching program is designed to make small businesses "more credit ready," according to Walter, which in turn allows the bank to lend more responsibly.

JPMorgan's shares (NYSE: JPM) rose 0.38% to $283.84 on the day of the announcement. The initiative follows other large-scale commitments by the bank in recent years, including a $30 billion racial equity commitment in 2020 and a $2.5 trillion climate change plan in 2021.

This article is for informational purposes only and does not constitute investment advice.