Lenders like JP Morgan Chase who make small business loans are going to have to up their lending in 2010 if unemployment is to be reversed, but many see more lending as a gamble that may cause more harm than good.
Big banks like JP Morgan Chase all had trouble collecting on loans last year and there are concerns that they will be tighter with small business lending in 2010, which could lead to more economic troubles and a slower recovery.
However, lending to small businesses, allowing more small business loans is going to create jobs down the road, allow businesses to expand, and pump life back into the economy. Small businesses have a chance to grow by leaps and bounds as we come out of a terrible recession that took down many businesses in its wake.
JP Morgan Chase has advertised lending to small businesses and still is seeking to help small business owners, but sustaining the ability to loan and collect on small business loans is what worries most banks.
In a good situation, a simple small business loan is going to have positive results for not only lenders like JP Morgan Chase, but also for the economy as it can allow businesses to expand, open jobs, provide income and stability to people, and then allow those people to put money back into the economy.
Again, JP Morgan Chase is one of the big lenders who have provided small business loans and in the new year they will be able to significantly help the economy and American people if they continue to do so.
