JPMorgan Chase &s; Co., the world’s largest financial services company, said Thursday it will offer a package of financial assistance to struggling small and midsize lenders.
The deal, announced in the second half of the year, is the latest example of how the financial services industry is trying to adapt to the challenges facing the country.
The offer, which will be subject to approval by the board of directors of the U.S. government, is expected to cost JPMorgan about $2 billion.
JPMorgan’s offer includes $1 billion to $2.5 billion in cash to help small and mid-sized lenders through the first two years of the rescue.
The company is also offering $100 million of additional funding for small and medium-sized businesses, according to a release from the company.
JPMorgan said it will pay for the loans through a combination of cash and debt, which would be the first time the bank has done so.
The bank said it plans to issue loans to more than 100 lenders in the first year of the program.
The companies offer the loans to the largest companies and banks that hold the bulk of the mortgages.
The loans would be backed by the government, which is the largest lender and investor in the U