Funder Spotlight: JP Morgan Chase
LISC LA is excited for J.P. Morgan Chase’s latest program initiative to promote economic growth in US cities.
In September, J.P. Morgan Chase pledged $500 million for a new program, AdvancingCities, to boost growth and create a greater economic opportunity in cities around the world. The effort will incorporate the firm’s lending capital, philanthropic capital, and expertise to make investments in cities.
AdvancingCities’ scope is to create opportunities for people who have been left behind by economic growth. The program will make investments in select cities to support collaborative and viable solutions that address cross-cutting challenges and help more people benefit from economic growth. The bank began accepting proposals in September 2018 from cities of all sizes for grants and low-cost loans that address at least two of four areas, which are jobs and skills, small business growth, neighborhood revitalization, and financial health. Proposals will be accepted until November 30, 2018. Announcement of winners will be in the spring of 2019. Proposals that are successful will support existing local coalitions of elected business and nonprofit leaders working together to direct major social and economic challenges. Employment barriers, financial security, and neighborhood disinvestment are the challenges that will be addressed.
Opportunity is not shared equally across neighborhoods. Businesses can and must step up to help change the status quo by creating a better future for all, no matter where they live. It is in our best interest and the right thing to do.
The bank intends to make large-scale investments in cities where it sees opportunity to improve economic inclusion. The firm’s CEO Jamie Dimon said in the announcement, “Opportunity is not shared equally across neighborhoods. Businesses can and must step up to help change the status quo by creating a better future for all, no matter where they live. It is in our best interest and the right thing to do.”
According to the J.P. Morgan Chase’s website, “Half of the $500 million will consist of philanthropic investments and up to $250 million will be low-cost, long-term capital deployed by the new AdvancingCities Investment Fund.” The capital will be used to fund “sustainable projects in critical sectors of underserved neighborhoods that frequently lack access to traditional financing, such as affordable housing, commercial real estate, and small businesses.”
As philanthropic groups and other financial organizations join the efforts, J.P. Morgan Chase said it expects an additional $1 billion in outside capital, resulting in a total of $1.5 billion directed to efforts that will increase inclusive growth in cities. The announcement is the biggest from the bank to date.
J.P. Morgan Chase is LISC LA’s steadfast partner and supporter of our Financial Opportunity Centers, which focuses on improving the financial lives of individuals and families who have limited wealth, income and employment opportunities.
Visit the J.P. Morgan Chase website for more information.