JP Morgan Chase & Co (JPM)

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Of All The Banks That Shafted Small Businesses Out Of Coronavirus Relief, JPMorgan Takes The Cake

While JPMorgan provided loans to virtually all of their commercial banking customers who applied for coronavirus relief through the small business program, their business banking unit - which serves smaller firms - only funded around 6% of applications for the Paycheck Protection Program (PPP), according to Bloomberg.



Of t he bank's more than 300,000 small business customers who applied, only around 18,000 were funded according to the report. Meanwhile, around 5,500 of the bank's commercial banking customers - nearly all of them, received loans through the small business lending program.

In total, JPMorgan originated a total of $14 billion in 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.

Restaurant chains, including Shake Shack Inc., Ruth’s Hospitality Group Inc., which operates Ruth’s Chris Steak House, and sandwich chain Potbelly Corp., received loans through JPMorgan. On Monday, Shake Shack said it was returning the money. -Bloomberg