JPMorganChase Pledges $80 Billion to Solve Small Business Succession Gap

JPMorganChase & Co. warned in a report titled Powering 10 Million Small Businesses that a lack of succession planning among baby boomer owners threatens the American economy. The bank estimates that 12 million businesses, holding nearly $10 trillion in assets, will change hands over the next decade.

Survey data indicates a significant planning gap, with 70% of owners in early succession stages but only 8% in advanced stages. The bank warns this deficiency risks widespread closures, especially in sectors critical to national security.

To mitigate these risks, the bank is lobbying for the American Ownership and Resilience Act, the Small Business Succession Planning Act, and the Retire Through Ownership Act. It is also urging the Small Business Administration to develop a national succession toolkit. As part of its American Dream Initiative, the bank pledged $80 billion in small-business lending over the next 10 years.