JPMorgan Chase has announced that it plans to invest an additional $50 million in Detroit's economic recovery, boosting its commitment to $200 million through 2022.
The financial services giant announced that it had exceeded its five-year, $150 million commitment to the city, which it launched in 2014 as a $100 million investment and increased by $50 million in 2017. Over the past five years, the company has invested a total of $155 million in the city to create small business loan programs like the Entrepreneurs of Color Fund and increase access to affordable housing and job training, while providing nearly twenty-two thousand employee volunteer hours to local nonprofits. The latest commitment from the bank will build on that success and target gaps in the city's economic recovery, with a focus on the city's African-American residents.
To that end, the firm will invest $20 million in a lease-purchase program that helps lower-income families achieve and sustain homeownership as well as efforts to improve access to capital for community development organizations and minority developers. Another $12 million will be used to increase African-American entrepreneurs' access to the Entrepreneurs of Color Fund and help local community development financial institutions (CDFIs) secure capital, technical assistance, and real estate for small businesses, while $10 million will support efforts to help entrepreneurs create jobs and remove barriers to employment. The remaining $8 million will be used to raise wages for JPMorgan Chase's entry-level employees, increase access to financial counseling services for underserved Detroiters, and fund financial coaching and savings incentive programs.
"This historic investment from JPMorgan Chase is further proof that the business community views Detroit, and our entire state, as a home for opportunity," said Michigan governor Gretchen Whitmer. "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."
"JPMorgan Chase's significant investment in Detroit...is poised to demonstrate that equity is the superior growth model to deliver a more prosperous and inclusive region," said PolicyLink president and CEO Angela Glover Blackwell. "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."