An empty restaurant serving only takeout due to the novel coronavirus, COVID-19, outbreak is seen in Washington, DC, on March 18, 2020. (Photo by NICHOLAS KAMM / AFP) (Photo by NICHOLAS KAMM/AFP via Getty Images)
JPMorgan Chase will invest $8 million in small businesses in the U.S., Europe, and China that have been hit hard by the public health and economic impacts of the COVID-19 crisis.
The investment is part of a much larger $50 million global philanthropic commitment to help provide emergency healthcare, food, and other humanitarian relief to vulnerable communities and existing nonprofit partners.
Chase will deploy the first $15 million “promptly” and the remainder over time. As consumers self-quarantine and cities go on lockdown, small businesses have already been majorly disrupted by the pandemic and are preparing for much worse over the coming weeks.
About half of small businesses have 14 or fewer cash buffer days, according to a JPMorgan research report on small business financial health in urban communities. In black or Hispanic communities, most small businesses have fewer than 21 cash buffer days.
Chase is working with its customers, including small businesses, to waive fees, extend payment due dates for cards, auto loans, and mortgages, and increase credit lines as needed due to coronavirus-related challenges, a spokesman for the company said.
Like most banks, it’s also directing people to its mobile app, but many small businesses still require branches to make change for drawers and to deposit cash.
The bank’s financial commitment follows one by Facebook, which said Tuesday it would invest a whopping $100 million in now struggling small businesses. Delivery startups like Grubhub and DoorDash are deferring or waiving commissions to encourage people to continue giving business to independent local restaurants.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
