JPMorgan Commits $30 Billion to Underserved Communities to Advance Racial Equity
JPMorgan Chase announced a series of new commitments to advance racial equity in the U.S., including channeling $30 billion of financing over the next five years to underserved communities to promote economic opportunities. The bank stated that efforts would focus especially on the Black and Latinx communities, aiming to address the structural barriers in the U.S that have created profound racial inequalities, and have been exacerbated by the COVID-19 pandemic.
The bank’s new commitments also include initiatives to build a more diverse and inclusive workforce in its own operations. JPMorgan stated that performance evaluations and compensation decisions for operating Committee members and their direct reports will take into consideration the executives’ progress in building a more equitable and representative workforce. The bank will also provide financial coaching to its US employees, in addition to programs to upskill and reskill employees globally.
JPMorgan’s new racial equity commitments will be focused on several areas, including promoting and expanding affordable housing and homeownership for underserved communities, growing Black and Latinx-owned businesses, and improving financial health and access to banking in Black and Latinx communities, in addition to its initiatives around its own employee base.
Some of the specific targets set by the bank include committing $8 billion to originate an additional 40,000 home purchase loans for Black and Latinx households, channeling up to $4 billion in refinancing loans to help Black and Latinx households achieve lower mortgage payments, and providing $14 billion to finance an additional 100,000 affordable rental units in underserved communities. JPMorgan will provide $2 billion in loans to small businesses in majority-Black and -Latinx communities, spend an additional $750 million with Black and Latinx suppliers, and will launch programs designed to help entrepreneurs access coaching, technical assistance and capital. In addition, the bank will open new branches and hire new community managers to help one million people open low-cost checking or savings accounts.
JPMorgan also announced that it will provide $2 billion in philanthropic capital over the next five years to drive an inclusive economic recovery and support Black, Latinx and other underserved communities, in addition to the firm’s current five-year $1.75 billion philanthropic commitment.
Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co., said:
“Systemic racism is a tragic part of America’s history. 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.”