U.S. President Barack Obama announced Friday that his country will provide 1 billion U.S. dollars in loan guarantees for Jordan to help the key Arab ally deal with the Syrian refugee crisis. He made the pledge before a meeting with Jordanian King Abdullah II at Annenberg Estate, located in Rancho Mirage, California. The promise, which follows a 1.25-billion-dollar loan guarantee announced last year, will make it easier for Jordan to enter the capital markets and borrow money. Jordan's economy is under pressure because of hosting nearly 600,000 refugees from Syria. It will cost the Jordanian government 900 million dollars in 2014, according to the U.S. Agency for International Development. "The people of Jordan have been very generous in absorbing hundreds of thousands of displaced persons from that war-ravaged country," Obama said. "It puts a great strain on the resources of Jordan and it's very important for us to make sure that we're supportive of the Kingdom in accommodating all these refugees," he added. Acknowledging that the Syrian crisis would not be resolved in the short term, Obama said he is considering new ways to pressure the government of Syrian President Bashar al-Assad. "There will be some intermediate steps that we can take to apply more pressure to the Assad regime, and we're going to be continuing to work with all the parties concerned to try to move forward on a diplomatic solution," Obama said. Abdullah said the rise of extremism in Syria and sectarian violence are among major concerns of Jordan in the region. "The main challenge that we have is how we bring a political comprehensive solution to the Syrian people," the king said. In addition, Obama said he would seek a new five-year memorandum of understanding (MOU) with the Jordanian government on providing fund and other U.S. resources for Jordan. The new MOU will last from 2015 to 2019. The current one, to expire in September, is worth 660 million dollars a year, including 360 million dollars in economic support funds and 300 million dollars in foreign military financing. Jordan's small size and lack of major economic resources have made it dependent on aid from Western and friendly Arab sources. The U.S. support, in particular, has helped Jordan address serious vulnerabilities, both internal and external. "Jordan is an invaluable ally and close friend of the United States," White House spokesman Jay Carney told a regular briefing earlier Friday. The United States has been providing Jordan with economic and military aid since 1951 and 1957, respectively. The U.S. aid to Jordan through the 2013 fiscal year amounted to approximately 13.83 billion dollars, according to a report issued by the Congressional Research Service in January. Jordan and Egypt are the only two Arab countries that have signed peace accords with Israel.