JPMorgan Chase raises $ 30 billion to promote racial equity

The largest bank in the United States, JPMorgan Chase, on Tuesday unveiled a series of new initiatives as part of its recently announced $ 30 billion commitment to boost racial equity over the next five years.

The financial institution provides support to minority preservation institutions (MDIs) and various managed community development financial institutions (CDFIs) as part of its program. “We know that these important institutions are creating lasting change for Black and Latinx families,” said Brian Lamb, Head of Diversity and Inclusion at JPMorgan Chase when he made the announcement, “and we hope our support for the people and businesses that are the backbone of our local economies. ‘

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JPMorgan launches Empowering Change, a new program supported by a $ 500 million investment from Google and in partnership with MDIs and CDFIs to provide economic opportunities to underserved communities. The program will introduce a new Empower money market share class, distributed exclusively by MDIs and CDFIs, including the Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank.

Furthermore, the new Empower money market share class will enable institutional clients and investors to support MDIs and diverse CDFIs that create a positive social impact.

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An annual donation of 12.5% ​​of the proceeds from the management fees on the Empower share class assets will be given to Chicago Community Trust’s Empower and Community Development Fund. The institutions will also have access to the depth and breadth of JPMorgan Asset Management resources, including the Morgan Money digital investment platform, sales and marketing and customer service report. In addition, partner companies will receive resources for training, education and marketing led by JPMorgan.

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JPMorgan is also committing $ 40 million to MDIs led by Black and Latinx as part of a $ 50 million pledge. The initial investment round will be used to support minority-owned and black-market MDIs, including the holding companies Liberty Bank and Trust, M&F Bank, Carver Federal Savings Bank and Broadway Federal Bank.

By the middle of the year, JPMorgan Chase expects to increase its investments in MDIs to also include MDIs led by Latinx and give the institutions access to as much as $ 500 million in community loans across the country to promote prosperity in communities create and grow local businesses. The funds can be used to provide more loans to consumers and businesses, expand operations and open branches to serve more communities, and to invest in new technologies and digital capabilities to modernize platforms, increase efficiency and deliver a better customer experience.

In addition to the investments, the MDIs will become JPMorgan customers and gain access to the firm’s expertise, solutions and network.

The announcement builds on the firm’s close relationship with Liberty Bank and Trust and the Harbor Bank of Maryland through the Treasury’s Bank Mentor Protégé program, which aims to promote inclusion in financial institutions and access to banking services to all expanding communities.

“JPMorgan Chase was one of the first to act as a mentor banker in the Treasury Bank Mentor Protégé program,” Lorraine Cole, head of diversity and inclusion officers for the U.S. Treasury Department, said in a statement. “The expansion of mentorship and training for banks with diverse leadership shows the serious commitment they share with the treasury to maintain capacity among small banks and minority banks. And their newly announced financial products and equity investments specifically targeted at MDIs and CDFIs can have a profound impact on the communities they serve. ‘

In recent months, other large banks have also invested or owned programs with minority banks.

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JPMorgan, along with MDIs and CFDIs, will also offer premium pricing tax credits for non-profit and black-owned, black-led and black-owned businesses. The funding goes to meaningful community projects, including grocery stores, shelters, health care clinics and small businesses. The racial equity program is part of an additional $ 100 million in NMTC funding dedicated annually to diverse organizations.

The first $ 20 million investment, in partnership with the Harbor Bank of Maryland, City First Bank and Partners for the Common Good, will provide critical funds to the Community of Hope in Washington, DC for the purchase, renovation and expansion. of a family health. and birth center, which will provide more than 5,800 patients medical, dental and behavioral health services annually. Community of Hope is the only medical institution with a maternity and childbirth unit served in the northeast and southeast of DC, assisting nearly 400 women a year with antenatal care.

In addition, JPMorgan will provide more than $ 300 million in additional funding to CDFIs over the next five years, after lending more than $ 285 million to CDFIs and their affiliates in 2020 and supporting the development of food banks and shelters, health centers, grocery stores and schools. . across the country through the NMTC program for racial equality. At least six of the projects, with a total funding of more than $ 60 million, specifically supported low-income communities.

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Other programs that JPMorgan has set up to help communities worldwide while recovering from the COVID-19 pandemic, and the racial inequalities it has highlighted, include:

• AdvancingCities, a $ 500 million philanthropic investment to promote inclusive growth and create greater economic opportunities in cities around the world, including Detroit, Chicago, the Bay Area, Greater Washington Area (DC) and Greater Paris
• The JPMorgan Chase Policy Center, which develops and promotes sustainable, evidence-based policy solutions to promote economic growth in collaboration with policy, business and community leaders
• The Entrepreneurs of Color Fund, a partnership with Local Initiatives Support Corporation (LISC) and a network of CDFIs that provide access to capital and technical expertise for Black, Latinx and other underserved entrepreneurs.
• New Skills at Work, a $ 350 million initiative focusing on hiring employees with criminal backgrounds and supporting their entry into the workforce