JPMorgan Chase announced additional investments and commitments exceeding $100 million in Black, Hispanic and Latino-owned and -led Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). Less than one year since announcing its $30 billion racial equity commitment, the firm has more than doubled its original $50 million pledge to MDIs and CDFIs by investing in a total of 14 diverse-led financial institutions, impacting more than 87 communities across 18 states and the District of Columbia.
JPMorgan Chase increased its commitment after seeing the impact of its initial $40 million investment in four MDIs earlier this year. To date those MDIs have used the capital to hire staff, invest in technology enhancements and expand into new markets. Diverse financial institutions play an important role in providing vital financial services, such as mortgages and small business loans, to underserved communities. According to the FDIC, every dollar of equity capital invested can increase MDI lending by eight to ten times. Meaning, JPMorgan Chase’s $100+ million investment could generate access to more than $1 billion in community lending across the nation, helping to create wealth, grow local businesses and improve customer experiences in those communities.
The new investments will support:
- Arkansas-based Southern Bancorp
- Florida-based Sunstate Bank
- Georgia-based Carver State Bank and Citizens Trust Bank
- Maryland-based The Harbor Bank of Maryland
- Michigan-based First Independence Bank
- South Carolina-based Optus Bank
- Texas-based Rio Bank and Unity National Bank
- Washington D.C.-based Industrial Bank
“We’re focused on strengthening these critical institutions by providing additional access to capital, connections to institutional investors, and offering mentorship and training opportunities,” said Doug Petno, CEO of Commercial Banking at JPMorgan Chase. “We know that every dollar invested in MDIs and CDFIs has a multiplying effect in our communities and we’re proud to help advance the sustainable change needed to close the racial wealth gap across the country.”
In addition to direct equity investments, MDIs and CDFIs working with JPMorgan Chase will also:
- Become J.P. Morgan clients, connecting them to the firm’s expertise, solutions and network
- Gain access to more than 16,000 of the firm’s ATMs—beginning November 1, 2021, Chase will not charge a fee for participating MDI and CDFI customers who make a withdrawal at a Chase ATM
- Receive customized training and advisory support from the firm’s Advancing Black Pathways Fellows and Service Corps programs
The firm also announced that J.P. Morgan Asset Management’s Empower money market share class has surpassed $5 billion in assets under management since launching in February. The Empower share class was established as part of the firm’s Empowering Change program, connecting MDIs and diverse-led CDFIs with institutional investors to create new income streams for partner banks. MDIs participating in the program include Citizens Trust Bank, Liberty Bank, M&F Bank, Optus Bank, The Harbor Bank of Maryland, and Unity National Bank.
“It’s important that we use our resources to help uplift as many local communities as possible,” said Brian Lamb, Global Head of Diversity & Inclusion at JPMorgan Chase. “Our financial commitment was just the beginning of our journey. We know that creating lasting change requires ongoing support and we’re thrilled to work with more Black, Hispanic and Latino MDIs and CDFIs to help drive generational change in our communities.”
JPMorgan Chase’s investment in MDIs and CDFIs is one of the firm’s initiatives to help close the racial wealth gap. Other initiatives include the recently announced $350 million, five-year global commitment to grow diverse-owned small businesses and help create a more inclusive recovery from the COVID-19 pandemic, which encompasses $42.5 million to help scale the successful Entrepreneurs of Color Fund (EOCF) program.
To learn more about how JPMorgan Chase is working to advance racial equity and bridge the racial wealth gap, visit www.jpmorganchase.com/pathforward.