JPMorgan to add $4 bn in small business loans

JPMorgan Chase & Co, the second largest U.S. bank said it now plans to add about USD 10 billion in total new lending this year to companies with annual sales of less than USD 20 million and it will hire about 325 bankers to help with this push.

"We've seen from our customers some renewed vigor for credit," said Kevin Watters, Chief Executive of Business Banking at Chase, in an interview. "Demand has started to pick up."

The improving economy also prompted JPMorgan to increase lending.

"Things we're seeing in terms of some stabilization in the economy would tell us this is a very good time to aggressively gain market share in small business lending," Watters said.

Like other banks that received billions of dollars in bank bailout funds last year, JPMorgan has come under pressure from lawmakers to boost lending to help the U.S. economy out of recession.

The second-largest U.S. bank repaid its USD 25 billion in Troubled Asset Relief Program funds this summer and it has taken pains to show it is making loans and supporting the economy.

"We have never stopped lending," said Watters.

This latest move follows other initiatives, including a mortgage modification program for homeowners and a new credit card for business customers.

Separately, JPMorgan lifted on Monday a freeze on salaries for employees earning more than USD 60,000, according to a memo that a spokesman confirmed.