Only 6% of smaller customers got paycheck-protection loans
Most of Chase’s larger commercial clients got small-biz loans
JPMorgan Chase & Co. provided loans to virtually all of its commercial banking customers that sought financing through the small business relief program, while the lender’s smallest customers were almost entirely shut out, according to data disclosed by the bank.
More than 300,000 customers of JPMorgan’s business banking unit, which serves smaller firms, applied for loans through the Paycheck Protection Program, part of the $2 trillion Cares Act that Congress adopted in late March. About 18,000 were funded, for a 6% success rate.
By comparison, about 5,500 larger, and sometimes more sophisticated, customers of the commercial banking business applied for funding. Nearly all of them got loans, according to the bank’s data. JPMorgan made a total of $14 billion in small-business loans through the program.
The data reveal that, in the race to get a loan in the first-come, first-served program, larger businesses had a leg up over smaller ones — even when applying through the same bank.