As part of its recently announced $30 billion program to advance racial equity, JP Morgan Chase (JPM) is dedicating a portion of this funding to help Black and Latinx small businesses. The initiative, part of the bank’s public policy efforts, focuses on the racial wealth divide, as well as activities that help reduce systemic racism. The funds, earmarked for championing economic opportunities in underserved communities, will be used to support initiatives rolling out over the next five years.
Prompted by the inequities made more visible by the coronavirus, the financial services firm is building on its existing commitment to underserved communities specifically to achieve a more inclusive economic recovery. Their efforts are directed at bringing down barriers in order to improve economic mobility that is important to the U.S. economy.
“We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co.
JPM announced the following initiatives that will provide greater support to Black and Latinx small businesses:
- Increase small business loans by 15,000 to majority-Black and -Latinx communities totaling $2 billion,
- Institute programs targeting entrepreneurs in historically underserved areas that includes coaching, technical assistance and capital,
- Offer a digital lending product tied more closely to the needs of small Black-and Latinx-owned businesses seeking ready access to capital,
- Earmark $750 million in expenditures to Black and Latinx suppliers,
- Work within minority communities to address financial health and access to banking, increasing the number of local branches and community managers for one million people to gain low-cost checking or savings accounts, and
- Invest up to $50 million in the form of capital and deposits in Black-and Latinx-led Minority Depository Institutions (MDI) and Community Development Financial Institutions (CDFI).
JPM will track the impact of these measures on the local communities that will be shared with its senior leadership and the Chase Advisory Panel. This will assure accountability in order that Black and Latinx small businesses gain greater support critical for their success.
Learn about JPMorgan Chases efforts to help Philadelphia-based small businesses
