Firm to invest in creating more economic
opportunity for black Detroiters through job training, small
business and home ownership
JPMorgan Chase & Co. today announced that it will expand the
firm’s investment in Detroit’s economic recovery, committing to
reach $200 million by the end of 2022. The announcement comes as
the firm exceeded its initial five-year, $150 million
commitment.
The new data-driven investment builds on the initial progress
that helped boost the city’s recovery through the creation of
sustainable loan programs for small businesses like the
Entrepreneurs of Color Fund and increased access to affordable
housing and job training, and targets the gaps in the city’s
economic recovery.
Despite the city’s continued economic progress, a city made up
of almost 80 percent African Americans, only 25 percent of Detroit
households are considered middle class, according to Detroit
Future City. JPMorgan’s new $50 million in philanthropic and
business investments will help further break down barriers to
opportunity so that more long-term residents of Detroit, especially
black Detroiters, can access job training, become homeowners and
grow small businesses.
“Too many people are being left behind, and we need to build an
economy that works for everyone,” said Jamie Dimon, Chairman and
CEO, JPMorgan Chase. “Our new investment in Detroit will help
the system work for more people – giving more Detroiters access to
the tools they need to succeed, stay and benefit from Detroit’s
continued recovery. A good education, the skills to secure a good
job, a home, and the capital and assistance to start and grow a
small business are some of the tools to creating opportunity and a
society where everyone benefits. I continue to believe Detroit is
an example to our country and the world of what can be achieved
through cooperation to solve today’s biggest challenges. And that
is why we continue to invest here and apply what we’ve learned here
in other cities.”
Detroit is where JPMorgan Chase tested, developed and refined
its proven model for driving inclusive growth in cities. The firm’s
investment in Detroit yielded valuable insights that turned into
new investments in other cities, including Chicago, Greater
Washington and Greater Paris through an initiative called
AdvancingCities. The program is a $500 million,
five-year initiative focused on investing business and
philanthropic capital in solutions that bolster the long-term
vitality of the world’s cities — and the communities within
them.
Investments Create Economic Opportunity in Detroit
Since 2014, JPMorgan Chase has invested $155 million in
Detroit's economic recovery. This investment has made a significant
impact, focusing on four main areas: jobs and skills training,
neighborhood revitalization, small business growth and financial
health. Specific results include:
- 15,469 Detroiters received services to improve their financial
health
- 13,573 Detroiters participated in job training programs aligned
with high-demand industries
- 5,111 businesses received capital or technical assistance
- 2,130 jobs were created or maintained
- 1,639 affordable housing units created or preserved
- 296,000 square feet of commercial space developed
- $290 million+ in additional, outside funding leveraged to
support residential and commercial development in
neighborhoods
“JPMorgan Chase stepped up to support Detroit at a critical time
in our history,” said Detroit Mayor Mike Duggan. “There’s
more work to do, and I’m glad JPMorgan Chase is expanding their
investment in the Motor City. Their investment has proven to others
that Detroit is a good bet.”
In addition to offering capital and philanthropic support, the
skills and expertise of JPMorgan Chase employees has helped local
nonprofits to solve challenges as part of its Detroit Service
Corps. Over the last five years, JPMorgan Chase deployed 146
employees from 16 countries to work on 40 projects for 28 Detroit
nonprofits, totaling 21,900 hours of pro bono support.
Also since 2014, JPMorgan Chase’s Community Development Bank
Group has facilitated nearly $150 million in New Markets and
Historic Tax Credit transactions and construction loans to
affordable housing projects throughout Detroit for the development
of 747 units of affordable housing, as well as grocery stores,
schools and commercial space. The Community Development Bank
intends to facilitate an additional $150 million to create
affordable, sustainable neighborhoods in Detroit.
New $50 Million
Commitment
Signs of economic progress in Detroit are clear -- the
unemployment rate is down from 20 percent in 2013 to less than 9
percent in 2018 according to the Bureau of Labor and Statistics.
For the first time in 17 years, home values have risen and mortgage
lending is up. However, there is much work to be done to help
long-term Detroiters share in the growth, and closing the wealth
divide would benefit both long-term residents and the economy.
PolicyLink research found that, in 2015, Detroit’s
regional economy could have been nearly $31.47 billion stronger had
no racial gaps had existed in income. According to the same
PolicyLink data, “people of color in the Detroit region as a whole
are projected to see their incomes grow by 57 percent with racial
equity. In the city of Detroit, people of color would see average
gains of 30 percent.”
To give black families and more Detroiters more access to
economic opportunity and upward mobility, JPMorgan Chase’s new,
forward-looking investment will leverage the firm’s philanthropy
and business activities, as well as the data and expertise of its
employees, to support initiatives around four key areas:
Improving Access to Homeownership & Affordable Housing
($20 million)
Increasing access to affordable housing and homeownership is
critical to helping Detroiters build wealth and have the ability to
stay in their neighborhoods. Initiatives include:
- Partnering with Cinnaire, CHN Housing Partners (CHN) and
Opportunity Resource Fund (OppFund), the firm will implement a
lease-purchase pilot to help Detroit’s lower-income families
achieve and sustain homeownership through the Low-Income Housing
Tax Credit program. The investment will focus on phase one of the
pilot to prepare 54 families to take title of their homes within
the next three years (2019 – 2021). The firm previously supported
this model in Cleveland, OH through a collaboration with CHN.
- Growing and preserving the supply of affordable, move-in ready
homes in strategic neighborhoods by increasing access to capital
for community development organizations and minority
developers.
Boosting Black Entrepreneurs ($12 million)
Black entrepreneurs are far more likely to have trouble
accessing the necessary financing and business tools needed to
start and grow their businesses. The Entrepreneurs of Color Fund,
run by Detroit Development Fund and supported by JPMorgan Chase,
among others, has made 84 loans to 68 small businesses worth
approximately $7.5 million. New initiatives include:
- Increasing the number of small businesses with access to the
Entrepreneurs of Color Fund.
- Partnering with local Community Development Financial
Institutions to increase access to capital, technical assistance
and real estate for small business to open and grow in strategic
neighborhood commercial corridors.
Investing in Job Training and the Future of Work ($10
million)
Equipping Detroiters with the skills they need to secure
in-demand jobs expands access to opportunity. New initiatives
include:
- Reducing employment barriers for Detroiters, including those
with criminal records, and improving foundational skills such as
literacy skills.
- Preparing workers for the jobs of the future by supporting job
training programs for growing industries in Detroit such as IT,
advanced manufacturing and health care.
- Providing more entrepreneurs with tools and resources to create
jobs.
“This historic investment from JPMorgan Chase is further proof
that the business community views Detroit, and our entire state, as
a home for opportunity. If we’re going to make Michigan a leader
again, we’ve got to put Michiganders first by working together to
provide pathways to high-paying jobs and ensuring that all
businesses have what they need to grow, and that’s what this
announcement is about today,” said Governor Gretchen
Whitmer. “I look forward to partnering with JPMorgan Chase, and
everyone who wants to get to work, to build a Michigan where more
businesses move to for opportunity.”
Financial Health ($8 million)
To help improve the financial health of Detroiters, the firm is
investing in programs that help individuals and entrepreneurs build
assets and establish a strong financial foundation. Initiatives
include:
- Raising wages for the firm’s entry-level branch and customer
services employees in the Detroit area to no less than
$16.50/hour.
- Increasing access to financial counseling services for
underserved Detroiters by helping them save money, build wealth and
reduce debt as well have greater opportunity to purchase
homes.
- Increasing investments in financial coaching and savings
incentive programs.
"Expanding access to social justice and economic opportunity for
our Detroit communities takes commitment and partnership, and
Capital Impact Partners has been fortunate to find both in JPMorgan
Chase," said Ellis Carr, President and CEO of Capital Impact
Partners. "Chase’s pioneering $150 million investment in the
city has allowed us to invest in many of Detroit's mixed-income
neighborhoods, supporting new and existing residents through
programming like the Equitable Development Initiative
and catalytic financing like the Detroit Neighborhoods
Fund. We look forward to future collaborations with Chase
that break down systemic barriers and create transformative change
for all Detroiters."
“We need to work together to solve big problems like the ones
Detroiters have faced for decades now,” said Marc Morial,
President, National Urban League. “Opportunity is still out of
reach for far too many, not just in Detroit but all across the
country, and JPMorgan Chase is driving an effort that includes many
private, public and non-profit institutions – to help more long
term Detroiters, especially those in the black community, to access
better jobs, buy homes, and find the resources they need to start
and open businesses.”
“JPMorgan Chase’s significant investment in Detroit through the
AdvancingCities initiative is poised to demonstrate that equity is
the superior growth model to deliver a more prosperous and
inclusive region,” said Angela Glover Blackwell, President and
CEO, PolicyLink. “This ambitious effort – including a
comprehensive approach, focus on the most vulnerable, and investing
in and partnering with local leaders – has the necessary components
for breakthrough innovation.”
“JPMorgan Chase continues to be a strong contributor and partner
in the growth of our city. I’m pleased to acknowledge their 5th
year in Detroit and look forward to many more,” said Brenda
Jones, President, Detroit City Council.
“By seeding catalytic investments in workforce and our local
small businesses, JPMorgan Chase & Co continues to be a trusted
partner and thought leader to the City of Detroit as we work to
expand economic opportunity in District 5 and to all Detroiters,”
said Detroit City Council Pro Tem, Mary Sheffield.
“JPMorgan Chase is committed to Detroit. With their partnership
we have been able to double down on efforts to revitalize our
neighborhoods and grow opportunities across our great city,” said
Andre Spivey, Detroit City Council. “I commend their work
and look forward to continuing the partnership.”
For more information visit:
www.jpmorganchase.com/detroit.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.7 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.
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Media Contact: Stephanie Bosh Stephanie.a.bosh@jpmorgan.com
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