NEW YORK, Feb. 23, 2021 /PRNewswire/ -- JPMorgan Chase
today announced initiatives to further support Minority Depository
Institutions (MDIs) and diverse-led Community Development Financial
Institutions (CDFIs), as part of the firm's recently announced
$30 billion commitment to advancing
racial equity.
MDIs and CDFIs provide vital financial services in communities
that are often underserved. In order to provide this necessary
funding to underrepresented communities, many MDIs and CDFIs need
additional capital themselves.
These new initiatives are focused on strengthening
minority-owned and diverse-led financial institutions by providing
additional access to capital, connections to institutional
investors, specialty support for Black-led commercial projects and
mentorship and training opportunities.
To support MDIs and CDFIs, today the firm is announcing:
1. A New Money
Market Share Class for Distribution by MDIs and Diverse-Led
CDFIs
JPMorgan Chase has launched Empowering Change,
a unique program supported by Google and in partnership with MDIs
and diverse-led CDFIs to provide economic opportunity to
underserved communities. The program is designed to allow MDIs and
CDFIs to offer new investment products to their customers, boost
their technological capabilities and develop new revenues through
fund distribution.
Google is anchoring the program's launch with an intent to
invest $500 million in the Empower
money market share class that will be initially distributed by
diverse-led MDIs The Harbor Bank of Maryland, Liberty
Bank and Trust, M&F Bank and Unity National Bank. This
initiative builds on Google's partnership with Opportunity Finance
Network to support CDFIs, and multiple racial equity commitments
made in 2020.
The Empowering Change program includes:
- A new Empower money market share class for distribution by
MDIs and diverse-led CDFIs, offered across J.P. Morgan Asset
Management's suite of money market funds,1
allowing institutional clients to support MDIs and diverse-led
CDFIs and create a positive social impact
- An annual donation of 12.5% of revenue received from the
management fees on Empower share class assets to support
community development
- Access to the depth and breadth of J.P. Morgan Asset
Management's resources, including the Morgan Money digital
investment platform, sales and marketing and client service
support
- Training, education and marketing resources for partner
firms led by JPMorgan Chase
The annual donation will be made for the life of the Empower
share class to the Empower and Community Development Fund, a
Donor-Advised Fund administered by the Chicago Community Trust that
is committed to supporting community development to expand
opportunities within underserved communities.
2. $40 Million in Direct Equity Investments and
Commitments to Leading MDIs
The firm has invested and committed the first $40 million of the $50
million equity pledge to Black and Latinx-led MDIs. The
initial round of investments support minority-owned and Black-led
MDIs including the holding companies for Louisiana-based Liberty Bank and Trust, North Carolina-based M&F Bank,
New York-based Carver Federal
Savings Bank and Los Angeles-based
Broadway Federal Bank.
By mid-year, JPMorgan Chase is expecting to increase its
investments in MDIs to also include Latinx-led institutions. In
total, the investments and commitments could generate access to as
much as $500 million in community
lending across the nation. The capital will help MDIs create wealth
in communities, grow local businesses and could be used to:
- Supply more loans to consumers and
businesses
- Expand operations and open branches to serve more
communities
- Invest in new technology and digital capabilities to
modernize platforms, drive efficiencies and deliver a better
customer experience
In addition to the equity investments, these MDIs will also
become J.P. Morgan clients and gain access to the firm's expertise,
solutions and network.
This announcement builds on the firm's close relationships with
Liberty Bank and Trust and The
Harbor Bank of Maryland through
the U.S. Department of the Treasury's Bank Mentor Protégé
Program, an important part of a broader strategy to promote
inclusion across financial institutions and extend access to
banking services to all communities.
3. A Racial Equity
Program to Support Vital Businesses and Nonprofits
Working with MDIs and diverse-led CDFIs, JPMorgan Chase is
providing premium New Markets Tax Credit (NMTC) investment pricing
for Black-owned, Black-led and Black-serving nonprofits and
businesses and helping to direct NMTC financing to meaningful
community projects, including grocery stores, shelters, healthcare
clinics and small businesses. This Racial Equity program is part of
the additional $100 million in NMTC
financing annually dedicated to diverse organizations, as part of
the firm's $30 billion commitment to
advancing racial equity.
The first $20 million investment,
made in partnership with The Harbor Bank of Maryland, City First Bank and Partners for the
Common Good, will provide critical funds to Community of Hope for
the purchase, renovation and expansion of the Family Health and
Birth Center. The facility—which will annually provide more than
5,800 patients with medical, dental and behavioral health
services—is the only medical establishment with a labor and
delivery unit serving the Northeast and Southeast quadrants of D.C.
and helps nearly 400 women per year with prenatal care.
JPMorgan Chase is providing more than $300 million in additional financing to CDFIs
over the next five years. The firm originated over $285 million of lending to CDFIs and their
affiliates in 2020 and has also supported the development of food
banks and shelters, healthcare centers, grocery stores and schools
across the nation through the NMTC program. Six of these projects,
totaling more than $60 million in
financing, have specifically supported low-income communities as
part of the NMTC Racial Equity Program.
Lasting Community Impact
JPMorgan Chase is using its expertise in business, policy, data
and philanthropy to help create an inclusive recovery and provide
economic opportunity to underserved populations, especially the
Black and Latinx communities.
The firm is also using its resources to provide end-to-end
support, including lending, equity, training, mentoring and
networking, to Black and Latinx communities and businesses as part
of its $30 billion commitment to
advance racial equity, Advancing Black Pathways program and other
initiatives.
To assist communities as they recover from the COVID-19 pandemic
and the racial inequities it has highlighted, JPMorgan Chase
continues to create greater economic opportunity in cities around
the world through:
- AdvancingCities, a $500
million philanthropic investment to drive inclusive growth
and create greater economic opportunity in cities around the world,
including Detroit, Chicago, the Bay
Area, Greater Washington
Area (D.C.) and Greater
Paris
- The JPMorgan Chase PolicyCenter, which develops and
advances sustainable, evidence-based policy solutions to drive
economic growth in collaboration with policy, business and
community leaders
- The Entrepreneurs of Color Fund, a collaboration with Local
Initiatives Support Corporation (LISC) and a network of CDFIs that
provide Black, Latinx and other underserved entrepreneurs with
access to capital and technical expertise
- New Skills at Work, a $350
million initiative to prepare people for the future of work
by hiring employees with criminal backgrounds and supporting their
reentry into the workforce
Comments on the Importance of Supporting Minority-Owned and
Diverse-Led Financial Institutions
"MDIs and CDFIs play a very important role in driving positive
change in our communities," said Doug
Petno, CEO of Commercial Banking. "As they continue to
strengthen their foundations and scale, these vital institutions
will provide additional capital, resources and services to help
more people and businesses in the communities that need it
most."
"The COVID-19 pandemic has only exacerbated the racial
inequalities in the U.S., which puts a strain on families' economic
mobility and impedes the continued growth of our economy," said
Brian Lamb, Global Head of Diversity
& Inclusion at JPMorgan Chase. "We know these crucial
institutions create lasting change for Black and Latinx families
and we hope our support will help uplift the people and businesses
that are the backbone of our local economies."
"The Empowering Change program will create new economic
opportunities for minority-owned and diverse-led financial
institutions, enabling qualified firms to offer our money market
funds, as well as gain access to advisory support, management
training and talent development," said Paula Stibbe, Head of Global Liquidity, Client
at J.P. Morgan Asset Management. "This will empower these firms
to deliver ongoing positive change in their communities. At the
same time, corporate investors can make their money matter by
investing in the Empower share class, designed specifically to
support their socio-economic goals."
"JPMorgan Chase was one of the first to step up to become a
mentor bank in the Treasury Bank Mentor Protégé Program," said
Lorraine Cole, Chief Diversity and
Inclusion Officer for the U.S. Department of the Treasury.
"Their expansion of mentoring and training support to diverse-led
banks demonstrates the serious commitment they share with Treasury
to sustain and build capacity among small and minority-owned banks.
And, their newly announced financial products and equity
investments directed specifically to MDIs and CDFIs can have deep
impact into the communities they serve. As the Administration
and nation confront the triple pandemics—to contain COVID-19,
deliver economic relief, and advance racial justice—such strategies
that strengthen the nation's financial network and banking services
in every community are an important part of this broader
imperative."
"Google is committed to helping create sustainable equity and
economic opportunity for all," said Juan
Rajlin, Vice President & Treasurer at Google. "We
know that racial equality is directly linked to economic
opportunity and are proud to partner on the Empowering Change
program, which will help create new business opportunities for
minority institutions."
"This infusion of capital will allow us to scale up our efforts
to support small businesses, increase our mortgage lending and help
refinance predatory lending products, which will result in
significant cash flow enhancements for our most challenged
communities," said Liberty Bank
President and CEO Alden J. McDonald
Jr. "We appreciate the confidence JPMorgan Chase has
placed in our ability to understand our customer base and offer
financial services that build wealth in our communities."
"For nearly forty years, The Harbor Bank of Maryland has been committed to creating wealth
in the African-American community by improving access to capital
and financial services," said Joseph
Haskins, Jr. Harbor Bank of Maryland Chairman and CEO.
"Through our work with JPMorgan Chase and Google, we believe that
there is a growing demonstration of the ability of trusted local
partners and large, committed corporations to deliver innovative
solutions, expand economic opportunity and better serve our
communities, customers, and shareholders."
"Now more than ever, we are committed to building the strength
and sustainability of minority-owned banks, particularly Black
banks, and the communities they serve," said Robert James, Chairman of the National Bankers
Association. "We welcome JPMorgan Chase as an Affiliate
Member of the NBA and look forward to working closely with them as
they expand their equity investments and revenue partnerships to
more of our members and help them structure those investments in
ways that maximize the overall impact in the chronically
underserved communities of color served by our banks."
For more information visit
www.jpmorganchase.com/impact/path-forward.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE:
JPM) is a leading global financial services firm with assets of
$3.4 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.
About Broadway Federal Bank and City First
Bank
Black-founded and led since 1947, Los Angeles-based Broadway Federal Bank,
subsidiary of Broadway Financial Corporation (NASDAQ: BYFC), will
merge with City First Bank in Washington,
DC, also Black-led and founded in 1998, to become the
largest Black-led minority depository institution (MDI) in
the United States in the spring of
2021. The newly combined bank will hold more $1 billion in assets under management and
approximately $850 million in total
depository institution assets as a commercial lender serving in
tier one urban markets who have chronically lacked access to
capital. With expanded lending capacity, and support from
long standing partners like JPMorgan Chase, the new bank will
strengthen investments in low-to-moderate income communities that
deliver critical community impact focused on affordable housing
development, nonprofit community facility lending, new markets tax
credit allocations, and small business financing. As well, they
will continue attracting additional impact-oriented investors and
depositors who see value in, and are aligned with our mission to
close the racial wealth gap through the provision of capital. Once
combined, Broadway and City First will operate from both
Los Angeles and Washington, DC as an MDI, Community
Development Financial Institution (CDFI) bank, Certified BCorp; and
members of the Opportunity Finance Network (OFN) and Global
Alliance of Banking on Values (GABV).
www.cityfirstbroadwaymerger.com | www.broadwayfederalbank.com |
www.cityfirstbank.com
About Carver Bancorp, Inc.
Carver Bancorp, Inc.
(NASDAQ: CARV) is the holding company for Carver Federal Savings
Bank, a federally chartered stock savings bank. Headquartered in
Harlem, NY, Carver was founded in 1948 to serve African-American
communities whose residents, businesses, and institutions had
limited access to mainstream financial services. The U.S. Treasury
Department has designated Carver as a Community Development
Financial Institution (CDFI) because of its community-focused
banking services and dedication to its local community's economic
viability and revitalization. Carver is the largest African- and
Caribbean-American managed Bank in the
United States. The Bank recently expanded its online
presence to include consumer checking and savings accounts across
nine states, from Massachusetts to
Virginia, and Washington, D.C. For further information,
please visit the Company's website at www.carverbank.com. Be sure
to connect with Carver on Facebook, LinkedIn, and Twitter.
About Harbor Bank of Maryland
Harbor Bank of Maryland was founded in 1982 and is a
Maryland chartered commercial bank
serving Maryland, Washington D.C. and Northern Virginia. As a designated CDFI, MDI,
SBA 7(a) and USDA lender, Harbor Bank offers checking, savings,
time deposits, credit cards, debit cards, commercial real estate,
personal, home improvement, and other installment and term loans.
The bank is also a member of local and national ATM networks.
About Liberty
Bank
Liberty Bank and
Trust is a designated MDI and CDFI, providing personal, business,
mortgage, automobile, home equity and freedom fast loans to
customers. Founded in 1972 in New
Orleans, Liberty has since expanded into nine states
and has maintained a dedication to community and business
development. The bank's mission is to provide cost-effective
delivery of high quality, innovative, customer driven financial
products and services to diverse markets, with a focus on
disadvantaged communities of color who have traditionally been
underserved. Information about Liberty
Bank and Trust Company at www.libertybank.net
About M&F
Founded in 1907 in North Carolina, M&F Bank is the
second-oldest minority-owned bank in the
United States. With $308.0
million in total assets, M&F Bank is the eighth-largest
African American owned financial institution in the United States and the only bank in
North Carolina to receive CDFI
designation. The bank's mission is to promote personal and
community development by providing capital to small- and
medium-sized businesses in its local communities.
About Unity National Bank
Unity National Bank of
Houston, N.A., originally founded
in 1963 and later chartered in 1985, is the only African American
owned banking institution in Texas. Banks like Unity popped
up across the nation during the 1960s civil rights movement.
Unity's leadership remains committed to the vision of providing
banking services to historically underserved businesses and
individuals and developing the bank into a dynamic banking
franchise, serving a diverse customer base. In addition to its
inner-city headquarters located in the heart of Third Ward Houston,
Unity opened its first branch in Missouri
City, Texas, Fort Bend
County, in 1998. Unity intends to continue building a
banking organization with multiple branch locations in the Greater
Houston Metroplex to provide convenient and professional service to
all of its customers. In March 2018,
Unity opened an Atlanta, Georgia,
branch allowing Unity's rich legacy to continue in a community well
positioned to support and utilize a new minority bank.
Investors should carefully consider the investment
objectives and risks as well as charges and expenses of a mutual
fund investing. The summary and full prospectuses contain this and
other information about the mutual fund and should be read
carefully before investing. To obtain a prospectus for Mutual
Funds: Contact JPMorgan Distribution Services, Inc. at
1-800-480-4111
Prime Money Market Fund: You could lose money by investing in
the Fund. Because the share price of the Fund will fluctuate, when
you sell your shares they may be worth more or less than what you
originally paid for them. The Fund may impose a fee upon the sale
of your shares or may temporarily suspend your ability to sell
shares if the Fund's liquidity falls below required minimums
because of market conditions or other factors. An investment in the
Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund's sponsor has
no legal obligation to provide financial support to the Fund, and
you should not expect that the sponsor will provide financial
support to the Fund at any time. Any gain resulting from the sale
or exchange of Fund shares will be taxable as long-term or
short-term gain, depending upon how long you have held your
shares.
All Other Money Market Funds: You could lose money by
investing in the Fund. Although the Fund seeks to preserve the
value of your investment at $1.00 per
share, it cannot guarantee it will do so. An investment in the Fund
is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund's sponsor has
no legal obligation to provide financial support to the Fund, and
you should not expect that the sponsor will provide financial
support to the Fund at any time. Performance may reflect the waiver
of a portion of the fund's fees and/or reimbursement of certain
expenses. If fees had not been waived and certain expenses were not
reimbursed the performance would have been lower.
J.P. Morgan Funds are distributed by JPMorgan Distribution
Services, Inc., which is an affiliate of JPMorgan Chase & Co.
Affiliates of JPMorgan Chase & Co. receive fees for providing
various services to the funds. JPMorgan Distribution Services, Inc.
is a member of FINRA
If you are a person with a disability and need additional
support in viewing the material, please call us at 1-800-343-1113
for assistance.
Copyright © 2021 JPMorgan Chase & Co., All rights
reserved
1 JPMorgan Prime Money Market Fund, JPMorgan 100%
U.S. Treasury Securities Money Market Fund, JPMorgan U.S.
Government Money Market Fund and JPMorgan U.S. Treasury Plus Money
Market Fund
View original
content:http://www.prnewswire.com/news-releases/jpmorgan-chase-announces-initiatives-to-support-minority-owned-and-diverse-led-financial-institutions-301233393.html
SOURCE JPMorgan Chase