Investment
Newest Initiatives of JPMorgan Chase's $30 Billion Commitment Emerge to Help Black Business in America and Globally By Jeffrey McKinney
COMPANIES ACROSS AMERICA HAVE committed tens of billions of dollars to racial equity. The promises by corporate giants last year were part of a big-picture move to fight concerns about systemic racism after the police killing of George Floyd and subsequent Black Lives Matter protests. By far, the biggest vow came from JPMorgan Chase last October after the nation’s largest bank pledged $30 billion over five years to help diminish the racial wealth and opportunity gap. The oath is huge, accounting for a hefty chunk of the combined commitments by U.S. companies overall. It marks the largest pledge by the New York-based bank ever to help Black American individuals and entrepreneurs achieve economic parity and racial equality. All in all, the pledge could boost Blacks’ ability to build new wealth, buy homes, start or expand businesses, and benefit from the philanthropic efforts. Simultaneously, the commitment is clearly needed. Numerous reports show wealth for Black American families remains much lower than for their White peers, a longtime trend. Black businesses have been hit harder by revenue loss and closures than other racial groups. That has been largely true recently amid COVID-19 as minority firms struggle to gain traditional bank financing and other types of capital. “Black, Latinx, and women entrepreneurs face historic challenges to accessing the capital and other resources needed to keep their doors open during the pandemic and ultimately have the opportunity to grow long-term,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. “Now more than ever, business has a responsibility to help solve societal problems. We’re pulling 72
March-April 2021
together our business resourc es, philanthropy and policy expertise to address the Brian Lamb, Global Head of Diversity racial wealth & Inclusion at JPMorgan Chase gap, give underserved small businesses the support they need to grow, and build a more inclusive economy.” In its march to help, JPMorgan is making good on its Path Forward (www.jpmorganchase.com/ impact/path-forward) commitment by implementing some tangible actions to jumpstart the massive commitment. The latest is a $350 million, five-year global commitment to grow Black, Latinx, women-owned and other underserved small businesses, helping close the racial wealth divide and create a more inclusive recovery from the COVID-19 pandemic. Over 40% of the pledge will be low-cost loans and equity investments, removing a critical barrier for Black, Latinx, women and other underserved entrepreneurs. Further, the bank is introducing data-driven policy solutions to boost capital access for historically underserved entrepreneurs. In another undertaking, part of a collaboration with Local Initiatives Support Corporation (LISC) and a network of Community Development Financial institutions (CDFIs), JPMorgan Chase is investing $42.5 million in low-cost loans and philanthropy to expand the Entrepreneurs of Color Fund. The fund now operates in five U.S. cities. The pledge will scale the fund to reach new U.S. cities in 2021. The action includes a goal to DAWN
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