JPMorgan Chase has announced commitments totaling $30 billion over five years, including $2 billion in philanthropic capital, to advance racial equity.
With the goals of addressing key drivers of the racial wealth divide, reducing systemic racism, and supporting the firm’s employees, the initiative will invest in efforts to promote and expand affordable housing and homeownership in underserved communities, improve financial health and access to banking in those communities, grow Black- and Latinx-owned businesses, and build a more diverse and inclusive workforce.
The $2 billion in philanthropic capital will support efforts to drive an inclusive economic recovery and support underserved communities by providing low-cost loans and grants aimed at improving housing stability and affordability for Black and Latinx households; fund research on the challenges and opportunities for Black and Latinx small business owners as well as research by the JPMorgan Chase Institute on racial disparities in household finances and access to credit; support a partnership with Prosperity Now on its Building High Impact Nonprofits of Color Initiative in eight cities; and fund and support nonprofits led by women and/or people of color that are working to create innovative workforce solutions and provide job training aimed at closing opportunity gaps and advance racial equity in the workforce.
The commitments include $8 billion to underwrite forty thousand new mortgages; $4 billion for refinancing loans; $14 billion for new loans, equity investments, and other efforts to expand affordable housing; $2 billion to underwrite fifteen thousand small business loans; $750 million in additional spending with Black and Latinx suppliers; and $50 million in capital and deposits in Black- and Latinx-led minority depository institutions (MDIs) and community development financial institutions (CDFIs). The bank also plans to hire a hundred and fifty community managers and establish a hundred branches in low- to moderate-income communities with the goal of helping a million people open low-cost checking or savings accounts; incorporate equity-related priorities into internal performance evaluations and compensation decisions; and provide financial coaching services for employees.
“Systemic racism is a tragic part of America’s history,” said JPMorgan Chase chair and CEO Jamie Dimon. “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.”