JPMorgan Chase is making a new $50 million commitment to help black Detroit residents buy homes, get job training, as well as start or expand small businesses in the next three years. The fresh investment will boost the nation’s largest bank’s total commitment in the Motor City to $200 million by late 2022.
The additional commitment comes as JPMorgan Chase exceeded its initial five-year, $150 million commitment to help with Detroit’s economic recovery, which included helping women, minority, and veteran entrepreneurs.
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, the bank said in a news release. It also 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% African Americans, only 25% of Detroit households are considered middle class, according to Detroit Future City. The bank’s $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.
The announcement was made Wednesday in Detroit. Attendees included JPMorgan Chase Chairman and CEO Jamie Dimon, Detroit Mayor Mike Duggan and Sonya Mays, CEO, Develop Detroit.
“Too many people are being left behind, and we need to build an economy that works for everyone,” Dimon stated. “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.”
The Motor City is where the banking and financial services powerhouse tested, developed, and refined its proven model for driving inclusive growth in cities. JPMorgan Chase said its 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.