As part of the firm’s recently announced commitment to advancing racial equity [1], JPMorgan Chase & Co. has invested $10 million in Liberty Bank [2], which will strengthen the independent, African American bank, increase local lending, and promote market expansion.
“This infusion of capital will allow us to scale up our efforts to support small businesses, increase our mortgage lending, and help refinance predatory lending products, which will result in significant cash flow enhancements for our most challenged communities,” said Liberty Bank President and CEO Alden J. McDonald Jr. “We appreciate the confidence JPMorgan Chase has placed in our ability to understand our customer base and offer financial services that build wealth in our communities.”
Based in New Orleans, Liberty Bank has for nearly 50 years successfully and profitably provided banking services to underserved communities to help them reach their financial needs and goals. Today, Liberty serves customers throughout America and has branch locations in nine states. Liberty is one of the largest African American-owned banks in the country.
The announcement today is part of a broader initiative by JPMorgan Chase to strengthen the foundations of vital Minority Deposit Institutions (MDIs) and Community Development Finance Institutions (CDFIs) in cities across the nation. These new initiatives are focused on supporting diverse led financial institutions by providing additional capital, connections to institutional investors, specialty support for Black-led commercial projects, and mentorship and training opportunities.
“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," said Brian Lamb, Global Head of Diversity & Inclusion at JPMorgan Chase. “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.”
In addition to the equity investment, Liberty Bank will gain access to the firm’s expertise, solutions, and network. Today’s initiative also includes:
- Access to J.P. Morgan Asset Management’s money market funds via a new Empower share class allowing institutional investors to invest with MDIs and CDFIs.
- A commitment to donate 12.5% of revenue for management of Empower share class assets to organizations supporting community development. The annual donation will be made for the life of the Empower share class to the Empower and Community Development Fund, a Donor-Advised Fund administered by the Chicago Community Trust that is committed to supporting community development to expand opportunities within underserved communities.
- The expansion of mentoring and training support for diverse-led financial institutions.
“For more than 30 years, JPMorgan Chase [3] and our predecessor banks in New Orleans have enjoyed working closely with Liberty Bank. Our organizations share many qualities, including a commitment to make our communities better, more equitable places for all,” said Greg Rattler, Executive Director and a Market Leader for JPMorgan Chase in New Orleans. “We look forward to forging an even deeper relationship that will benefit communities around the country. This is a business investment in a strong, successful bank, and we could not be more proud.”