JPMorgan Chase this week announced its plan to commit $30 billion toward philanthropic work aimed at advancing racial equity.
The announcement [1] outlines how the company plans to distribute these funds across multiple efforts. The announcement details how the company will promote affordable housing and homeownership in underprivileged communities across the country, help grow Black- and Hispanic/Latinx-owned businesses, improve financial health and access to banking in communities of color, build a more diverse and inclusive workforce within the company, advocate for policy reform, and partake in other philanthropy.
“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. “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.”
Aiding communities of color with affordable housing is one of the top priorities outlined in the JPMorgan Chase announcement. Finding affordable housing in terms of rental opportunities as well as homeownership is a major struggle for Black and Latinx communities across the country. Homeownership is 25% lower among Black and Latinx families.
JPMorgan Chase aims to address this by originating an additional 40,000 home purchase loans for Black and Latinx households over the next five years by committing $8 billion in mortgages. The company also intends to “help an additional 20,000 Black and Latinx households achieve lower mortgage payments by providing up to $4 billion in refinance loans over the next five years.”
JP Morgan aims to provide more educational opportunities and counseling programs to help more Black and Latinx communities achieve sustainable homeownership. The company also plans to take action from a policy perspective by working with the U.S. Department of Housing and Urban Development (HUD) and advocating for comprehensive housing reforms to increase access to homeownership.
The company will finance an additional 100,000 affordable rental units over the next five years by providing “$14 billion in new loans, equity investments and other efforts to expand affordable housing in underserved communities.”
JP Morgan is also committing to the growth of Black- and Latinx-owned businesses, who often face numerous challenges while developing and scaling their businesses. The firm plans to offer an additional 15,000 loans to small businesses in majority-Black and -Latinx communities by devoting $2 billion in loans over the next five years.
The investment bank’s efforts towards supporting these businesses will also include launching a new program to help entrepreneurs in underserved areas gain access to coaching, technical assistance and capital. There will also be an expansion of the Entrepreneurs of Color Fund to support more Black and Latinx small business owners.
The company will also be working on a digital lending product to better help small Black- and Latinx-owned businesses looking for quick access to capital. In regards to policy, JPMorgan Chase will advocate for Small Business Administration reforms and more COVID-19 aid.
To help improve the overall financial health of Black and Latinx households, JPMorgan Chase will “help one million people open new low-cost checking or savings accounts” and hire 150 new community managers while opening new Community Center branches in underserved communities. The company also intends to support a federal wealth and savings agenda.
The firm outlines how it will make efforts to build more diversity and inclusion in its workforce by holding executives accountable for helping improve companywide diversity. JPMorgan plans to invest in its employees by providing financial coaching and starting a new program to upskill and reskill employees, and offering paid time off to vote.
The company plans to invest in start-up companies offering opportunities in underserved communities and will partner with Historically Black Colleges and Universities (HBCU).
Lastly, JPMorgan Chase intends to get involved in philanthropy by providing $2 billion in philanthropic capital over the next five years. The firm’s philanthropic efforts will also include investing in research pertaining to financial and housing struggles Black and Latinx families face, supporting diverse-led non-profit organizations, and offering “low-cost loans and philanthropy to improve housing stability and affordability for Black and Latinx households.”