Wells Fargo, JP Morgan Chase, Bank Of America Small Business Loans—Will Lenders Do More In 2010?
Small businesses need access to capital to expand, grow, and hire new employees. Also, small businesses are said to be the factor that can turn the unemployment situation around, but many are wondering if the three biggest lenders to small businesses, Wells Fargo, Bank of America, and JP Morgan Chase are going to offer those loans in 2010.
Wells Fargo, Bank of America, and JP Morgan Chase have been crucial in the beginning and survival of many small businesses in the past but reports of lenders tightening their lending practices have many worried that doing so is going to hinder economic growth and job creation.
Obviously, lenders like Wells Fargo, Bank of America, and JP Morgan Chase are looking out for their customers and investors when they tighten their lending practices. Banks are concerned over just how stable the economy is and worried about defaults from lending to businesses that either may be struggling or haven’t even begun yet.
However, small businesses have the potential to grow in size, providing more jobs, but lenders like Wells Fargo, Bank of America, and JP Morgan Chase will have to begin lending more to small businesses.
The economy is seemingly on stable ground but problems in housing, which are a result of unemployment, are the biggest, if not the only, thing keeping our economy from growing again. Hopefully, Wells Fargo, Bank of America, and JP Morgan Chase, along with other banks like CitiGroup, will begin lending again and the unemployment and housing problems will begin to mend.
Banks like Chase have not only made less money available for small businesses but also have increased the interest on business credit cards tremendously.
I am a business owner and just found out that all my credit cards with JP Morgan Chase have been jacked up to 29.99% APR since last October.
I have good credit and I have never been late.
I called and they said that they are currently “reviewing their portfolio” and maybe lowering some of their customers fees but at the moment they could not do anything about this and to call back in one or two months.
It is one thing not to make credit available but to take advantage of already good customers is just disgraceful. I have asked friends on FB and posted story in chat rooms and many other business owners have had the same experience. When the same thing happened with my Citi card credit cards, they lowered the rate right away. With Chase I have no had any luck yet.
Chase also jacked my interest rate to 32.9% with NO late payments, NO over limit charges, and NO negative comments in my credit file EVER. I called them and they said that there was “something disturbing” in my credit file, so I ordered a copy of my file. I had a credit rating of 722, which is in the top 7% of credit ratings, and nothing disturbing from any of the three credit reporting agencies.
So, Chase, Wells Fargo, and Bank of America, go ahead and tighten up your credit and jack up our rates. We don’t care. Because, as small business owners, we remember how you have treated us in the past. These three banks are in the top three biggest threats to my small business that I’ve encountered last year. I paid them all off and I will never have a credit card, loan, or mortgage from ANY of these dastardly-three ever again for the rest of my life.
I intend to spend 32.9% of my free time making sure that these three banks leave our country and are never allowed to do business in the USA again!
I’d rather do business with Al-Qaeda Bank! At least they’re up front with you and they tell you to your face that they’re trying to destroy you!
I had the exact same experience! And I agree with you Siegel, we as business owner don’t forget. Screw us in a time of need and we remember.
JP Morgan Chase have been the worst though. Their customer service leave a lot to be desired. I had closed by business checking account with them a while ago since going to the bank branch was like visiting some third world bureaucrat office.
Now they increased the interest of all by credit cards and I have always been on time.
Chase I hope you are reading this because I am NEVER going to do business with you EVER again!!!
I encourage other business owners to do the same.