JPMorgan Chase announced today that it has received approval for an additional 211,000 loans through “Round Two” of the Paycheck Protection Program (PPP), totaling about $15 billion to its small business customers. In total, the firm is expected to fund about $29 billion to over 239,000 businesses under the PPP since its inception a little over three weeks ago, helping to support 3 million employees.
More specifically about JPMorgan Chase’s lending through the PPP:
- The average loan amount is $123,000
- About 50% of the loans went to companies with fewer than 5 employees
- Over 75% of the loans were for under $100,000
- Over 40% of the loans were for under $25,000
JPMorgan Chase is proud to have secured approval for loans to small businesses in all 50 states. For example, approximate loans by state include:
- Arizona: 10,500 businesses at an average loan size of $116,000 totaling $1.2 billion
- California: 46,800 businesses at an average loan size of $98,000 totaling $4.6 billion
- Florida: 18,500 businesses at an average loan size of $81,000 totaling $1.5 billion
- Illinois: 19,500 businesses at an average loan size of $113,000 totaling $2.2 billion
- Michigan: 9,300 businesses at an average loan size of $151,000 totaling $1.4 billion
- New York: 50,800 businesses at an average loan size of $136,000 totaling $6.9 billion
- Ohio: 7,100 businesses at an average loan size of $159,000 totaling $1.1 billion
- Texas: 27,400 businesses at an average loan size of $120,000 totaling $3.3 billion
Jamie Dimon, chairman and CEO of JPMorgan Chase, said today: “Thousands of dedicated JPMorgan Chase technologists, bankers and others worked tirelessly over the past 30+ days to support the federal government in one of the largest and most ambitious emergency lending facilities in history.”
Since this crisis began, the firm’s goal has been to help as many small business customers as possible. We know how important capital is to their business, and we are trying to do all we can to help. The firm will also continue to work with additional small businesses whose applications are actively being processed.
“We know that small businesses across our country have been profoundly impacted by the crisis, and we are proud to play a role in providing much needed help – helping to secure $29 billion of loans to 239,000 businesses in need,” said Jennifer Roberts, CEO of Chase Business Banking. “In partnership with the government, we’ve followed their direction to deploy this relief as quickly as possible and agree with their tightening of eligibility requirements so that funding truly goes to those that need it most.”
The vast majority of these loans went to some of America’s smaller businesses, including Community Wellness Ventures, a mental health services company that serves children and families in Washington D.C. Their PPP loan was approved this week and will help Dr. Charlayne Hayling-Williams and her husband Dr. Rod Williams continue to pay their counselors, social workers, psychologists and housing specialists.
“I own two restaurants in New York City which have been completely shuttered,” said Paula Vargas, proprietor of family-owned El Coyote Restaurant. “I did not apply initially because my father and brother were in the hospital with the Coronavirus, battling for their lives. Chase not only helped me every step of the way with the application process, but did so at any time of the day or night. This loan will be able to put us back on the market and provide relief for our 60 employees and their families.”
JPMorgan Chase will continue to help customers and communities during this crisis. The firm has provided payment deferrals and fee waivers on credit lines, loans, business credit cards and checking accounts to customers facing financial hardship.
To help those hit hard by the crisis, since March, JPMorgan Chase has made an initial $200 million global business and philanthropic commitment to support vulnerable and underrepresented communities, existing nonprofit partners and underserved small businesses. Additionally, just this week the firm is providing an additional $50 million in low-cost, long-term capital to a Community Development Financial Institution, Grow America Fund, so they can support small businesses in underserved communities that need capital to cover expenses such as rent and employee salaries. Finally, the firm does not intend to earn a profit from PPP and remains fully committed to supporting programs that help small businesses – especially minority-owned businesses and underserved communities that have been economically impacted by the pandemic.