JPMorgan Chase Commits $150 Million to Chicago's South and West Sides to Advance Racial Equity
JPMorgan Chase announced a new $150 million, five-year commitment in philanthropic capital and low-cost loans to Chicago's South and West sides. This is part of firm's continued effort to help advance racial equity across Chicago through new business investments, philanthropy and cross-sector partnerships. It will bring the firm's total business and philanthropic investments toward Black and Latinx and other underserved communities in Chicago to $800 million by 2025.
By combining the firm's unique set of business, data, policy and philanthropic resources, JPMorgan Chase aims to improve homeownership opportunities, accelerate wealth creation, help grow small businesses and expand financial health for Chicago's South and West sides. These commitments continue to be informed by the firm's additional home lending in Chicago, recent progress and insights from its philanthropic work in the city since 2017 and through conversations with local community, government and business leaders in Chicago. Today's announcement is part of the firm's $30 billion national commitment to advance racial equity.
"Business has a responsibility to help solve challenges facing the customers and communities it serves, and that includes addressing long standing racial and economic inequities that affect far too many Chicagoans," said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. "We must all collectively do more to close the racial wealth divide. That's why we are furthering our commitment to create meaningful, lasting, and equitable change in Chicago, especially on the West and South sides."
During the pandemic, 69% of Black households and 63% of Latinx households reported having financial problems, compared to 33% of White households in Chicago.1 JPMorgan Chase's $150 million commitment to Chicago's South and West sides intends to support an inclusive recovery from the pandemic by:
- Jobs and Skills: Connecting 5,000 people with high-quality career pathways and engaging 100 employers in these efforts. This includes collaborating with HIRE360 to create the first 20 cohorts of its Apprenticeship Prep program to prepare 400 apprentice candidates to meet entrance requirements for apprenticeships in more than 30 construction industry trades.
- Neighborhood Development: Preserving or creating 1,000 units of low-income housing to serve 2,500 individuals. For example, collaborating with Community Investment Corporation to capitalize the Woodlawn Construction Loan Fund to provide low cost financing to developers for the acquisition and rehab of multifamily and single-family properties in the Woodlawn community on the South side.
- Small Business: Helping 9,000 small businesses receive services, including at least 1,000 minority business owners access capital. The firm is collaborating with the Fund of Equitable Business Growth to create a marketplace of services such as expanded business models and education for minority small business owners across Chicago.
- Financial Health: Helping 10,000 people access high-quality products and services to improve their financial health. For example, the firm is investing in Working Credit to expand its financial coaching and credit building program into the City Colleges of Chicago's Fresh Start Program. This program helps more than 700 Chicago students improve their credit scores and credit literacy.
"Continued investments like these allow us to unlock the full potential of each and every one of our communities," said Chicago Mayor Lori E. Lightfoot. "This announcement not only shows just how important it is to forge public-private sector partnerships to bring about meaningful change to our communities, but it also builds upon our ongoing work to ensure that every one of our residents has a clear path to good paying, sustainable jobs and financial wellness resources. I want to thank JPMorgan Chase for its commitment to revitalizing and strengthening our South and West Sides, which will undoubtedly support our inclusive recovery from the pandemic."
Informed by Lessons Learned
"By improving our business practices, making philanthropic investments and supporting policies that result in sustainable change, JPMorgan Chase aims to address the barriers to economic success that many Black and Latinx communities face across Chicago," said Curtis Reed, Greater Chicagoland Region Manager, Middle Market Banking, for JPMorgan Chase Commercial Banking. "We'll promote homeownership, grow small businesses and improve access to banking in areas of Chicago that need it most. We're encouraged by the impact of our recent investments ? evidence that our model works."
The new investments will build on learnings, insights and progress from the firm's initial $50 million commitment in philanthropic and flexible capital to the South and West sides, which the firm has deployed and exceeded. This includes working with other funders, civic and community leaders to create solutions at scale, aligning philanthropic and business strategies to achieve maximum impact, and using research and data to drive sustainable solutions. Since 2017, JPMorgan Chase has connected residents and small businesses with economic opportunity, helping:
- 12,000 participants complete the workforce program
- 17,000 small businesses receive assistance
- 10,000 people be placed into employment or work experience
- 91,000 individuals receive services to improve their financial health
- 132 affordable housing units be developed or preserved
"Economic impacts of the pandemic have exacerbated inequities across Chicago, including barriers to homeownership that already disproportionately affect Black and Latinx households. JPMorgan Chase is clearly committed to supporting an inclusive recovery and closing the racial wealth gap, especially on the South and West sides," said Raul Raymundo, CEO and Co-Founder of The Resurrection Project. "The Resurrection Project is honored to partner with JPMorgan Chase, and the city, in this critical work."
Building on JPMorgan Chase's Commitment to Advance Racial Equity
In October 2020, JPMorgan Chase announced a $30 billion commitment over five years to provide economic opportunity to underserved communities, especially the Black and Latinx communities, and help drive an inclusive economic recovery. The firm is putting this commitment into practice to help advance racial equity in underserved communities such as Chicago's South and West sides by:
- Committing an additional $600 million in home lending to increase homeownership among 3,000 Black and Latinx families across Chicago;
- Opening a community-based Chase branch in Chicago's South Shore neighborhood ? the first of more than 300 branches in Chicagoland to feature a new community-inspired model offering free financial health resources like skills training, small business pop-ups, and fintech innovation to local residents;
- Hiring local Community Home Lending Advisors, Minority Business Consultants and Community Managers to provide resources for local residents on the homebuying process, serve as mentors to small businesses and foster community engagement;
- Hosting more than 100 community events and workshops, including events in partnership with community, government and faith-based organizations to educate local residents and entrepreneurs on how to build wealth, and access small business resources.
About JPMorgan Chase in Chicago
JPMorgan Chase has a 150-year history of serving customers and communities in Chicago. Today, JPMorgan Chase is one of Chicago's largest employers with 14,000 people living and working here. The bank serves 4.5 million customers and nearly 500,000 businesses across the metro area.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
1 https://media.npr.org/assets/img/2020/09/08/cities-report-090920-final.pdf
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