Chase Takes Nationwide Action to Expand Credit Access for Small Businesses Through Special Purpose Credit Program in Historically Underserved Areas
18 Novembro 2022 - 12:40PM
Business Wire
As part of JPMorgan Chase’s $30 billion commitment, Chase has
developed a Special Purpose Credit Program to expand credit access
to businesses in majority Black, Hispanic and Latino
communities
Chase has announced the national launch of a Special Purpose
Credit Program (SPCP) to improve access to credit for small
business owners in historically underserved areas. The program is
the first of its kind to be offered for small business owners
nationally and one of many initiatives Chase has introduced to
expand small business relationships, drive inclusive economic
growth and increase access to credit for minority small business
owners in a sustainable way.
“Access to capital has historically been disproportionally
challenging for small business owners who live and work in
communities of color,” said Ben Walter, CEO, Chase Business
Banking. “We want to do our part to create more parity by saying
yes to more business owners in these areas so they can grow and
thrive, and their communities can benefit in turn.”
The program is geography-based, allowing the bank to target
capital to the areas that need it most. The goal of the program is
to extend credit to small business owners who might not otherwise
be approved or receive it on less favorable terms. Customers do not
need to do anything special to qualify. If the business is located
in an eligible area, then the application will be evaluated under
the program.
Chase began piloting the program in Dallas, Detroit, Houston,
and Miami earlier this year and expanded it to 21 cities in July.
It is now available for businesses in majority Black, Hispanic and
Latino neighborhoods across the U.S.
Small Businesses are the Engine of the American
Economy
“Small businesses are critical drivers of economic growth and
job creation, and credit is key to helping them survive and
thrive,” Walter said. “They are also important anchors for their
neighborhoods, and when they are better able to invest and grow
they create more vibrant and resilient communities.”
As part of the firm’s $30 billion commitment, its Business
Banking arm has been increasingly focused on supporting the growth
of Black, Hispanic and Latino entrepreneurs.
“Minority entrepreneurs are rapidly becoming the customer of the
future,” said Mikal Quarles, head of Chase Business Banking Racial
Equity Strategies. “We want to help more minority-owned businesses
create and sustain wealth long-term. We are accomplishing this by
building the infrastructure, strengthening relationships, and
bringing owners into the mainstream financial system. Growing and
thriving small business customers are an important driver of our
long-term business goals.”
Other Initiatives Under way to Support Minority Business
Owners
Special Purpose Credit Programs are just one way Chase is
driving sustainable, inclusive economic growth with a focus on
greater access to credit. Chase recently:
- Improved the application process for smaller-dollar
loans (generally up to $500,000) to make the process easier,
faster and less intimidating.
- Launched a digital loan application so customers can
apply for a business line of credit online – no need to call or
visit a branch. It’s being rolled out in phases and is expected to
be widely available in 2023.
- Expanded its free one-on-one coaching program to more
than 40 trained senior business consultants in 21 U.S. cities to
provide mentoring and advice to minority business owners on
everything from boosting creditworthiness to managing cash flow to
effective marketing.
- Since the program’s inception in 2020, Chase has mentored more
than 2,600 minority business owners, helping them improve their
operations, plan for growth, and network with others in the local
business community.
- Launched a new resource center at
Chase.com/businessconsultant that provides free educational
content, resources, and advice to help early-stage and established
entrepreneurs achieve their goals.
"Creating a more equitable economy is a business and social
imperative," said Marc Morial, President and CEO of the National
Urban League. "I applaud Chase for helping minority business owners
pursue their dreams."
Research Supports the Need for Special Efforts to Expand
Access to Credit
When looking at liquid wealth among U.S. small business owners,
the JPMorgan Chase Institute found that:
- Black and Hispanic small business owners have a lower level of
starting wealth, which may mean these founders are less able to
invest in their businesses.
- Existing wealth inequities could influence the ability of Black
or Hispanic founders to invest in their businesses and generate
meaningful wealth.
- Programs targeting low-income or majority-minority
neighborhoods could be particularly helpful for Black and Hispanic
business owners, who typically start firms with less cash, which
may limit their opportunities for wealth creation.
About Chase Chase is the U.S. consumer and commercial
banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading
financial services firm based in the United States with assets of
$3.8 trillion and operations worldwide. Chase serves more than 66
million American households and 5 million small businesses with a
broad range of financial services, including personal banking,
credit cards, mortgages, auto financing, investment advice, small
business loans and payment processing. Customers can choose how and
where they want to bank: More than 4,700 branches in 48 states and
the District of Columbia, 16,000 ATMs, mobile, online and by phone.
For more information, go to chase.com.
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Chase media contact: Stephanie Ahenkora
stephanie.ahenkora@chase.com Jerry Dubrowski
jerry.dubrowski@jpmorgan.com
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