JPMorgan Chase announced the launch of a series of new initiatives, aimed at strengthening minority-owned and diverse-led financial institutions by providing additional access to capital, connections to institutional investors, specialty support for Black-led commercial projects and mentorship and training opportunities.
The new initiatives will target Minority Depository Institutions (MDIs) and diverse-led Community Development Financial Institutions (CDFIs), and form part of the bank’s recently announced commitments to advance racial equity in the U.S. In October, JPMorgan Chase unveiled several programs to support this goal, including a pledge to channel $30 billion of financing over the next five years to underserved communities to promote economic opportunities.
Doug Petno, CEO of Commercial Banking, said:
“MDIs and CDFIs play a very important role in driving positive change in our communities. As they continue to strengthen their foundations and scale, these vital institutions will provide additional capital, resources and services to help more people and businesses in the communities that need it most.”
The new initiatives include the launch of Empowering Change, a unique program supported by Google and in partnership with MDIs and diverse-led CDFIs to provide economic opportunity to underserved communities, enabling MDIs and CDFIs to offer new investment products to their customers, boost their technological capabilities and develop new revenues through fund distribution. JPMorgan Chase stated that Google is anchoring the program’s launch with an intent to invest $500 million in the Empower money market share class that will be initially distributed by diverse-led MDIs The Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank.
Juan Rajlin, Vice President & Treasurer at Google, said:
“Google is committed to helping create sustainable equity and economic opportunity for all. We know that racial equality is directly linked to economic opportunity and are proud to partner on the Empowering Change program, which will help create new business opportunities for minority institutions.”
Other initiatives announced today by JPMorgan Chase include $40 million of direct equity investments and commitments in several minority-owned and Black-led MDIs, including the holding companies for Louisiana-based Liberty Bank and Trust, North Carolina-based M&F Bank, New York-based Carver Federal Savings Bank and Los Angeles-based Broadway Federal Bank. JPMorgan Chase is also providing premium New Markets Tax Credit (NMTC) investment pricing for Black-owned, Black-led and Black-serving non-profits and businesses and helping to direct NMTC financing to meaningful community projects, including grocery stores, shelters, healthcare clinics and small businesses. The bank also highlighted a series of programs aimed at assisting communities as they recover from the COVID-19 pandemic.
Brian Lamb, Global Head of Diversity & Inclusion at JPMorgan Chase, said:
“The COVID-19 pandemic has only exacerbated the racial inequalities in the U.S., which puts a strain on families’ economic mobility and impedes the continued growth of our economy. We know these crucial institutions create lasting change for Black and Latinx families and we hope our support will help uplift the people and businesses that are the backbone of our local economies.”