New York’s JPMorgan Chase and Co. today announced that it will expand the firm’s investment in Detroit’s economic recovery, committing to reach $200 million by the end of 2022. The announcement comes as the firm exceeds its initial five-year $150 million commitment.
Detroit’s population is almost 80 percent African American, but only 25 percent of Detroit households are considered middle class, according to Detroit Future City.
JPMorgan’s new $50 million in philanthropic and business investments will help further break down opportunity barriers so that more long-term residents of Detroit, especially black Detroiters, can access job training, become homeowners, and grow small businesses.
The new data-driven investment builds on the initial progress through the creation of sustainable loan programs for small businesses as well as increased access to affordable housing and job training.
The unemployment rate in Detroit is down from 20 percent in 2013 to less than 9 percent in 2018, according to the Bureau of Labor and Statistics. For the first time in 17 years, home values have risen, and mortgage lending is up. However, according to JPMorgan, there is much work to be done to help long-term Detroiters share in the growth and continue closing the wealth divide which would benefit both long-term residents and the economy.
“Too many people are being left behind, and we need to build an economy that works for everyone,” says Jamie Dimon, chairman and CEO of JPMorgan Chase. “Our new investment in Detroit will help the system work for more people, giving more Detroiters access to the tools they need to succeed, stay, and benefit from Detroit’s continued recovery.”
Detroit is where JPMorgan Chase tested, developed, and refined its proven model for driving inclusive growth in cities. The firm’s investment in Detroit yielded valuable insights that turned into new investments in other cities, including Chicago, Washington, D.C., and Paris through an initiative called AdvancingCities. The program is a $500 million, five-year initiative focused on investing business and philanthropic capital in solutions that bolster the long-term vitality of the world’s cities and the communities within them.
Since 2014, JPMorgan Chase has invested $155 million in Detroit’s economic recovery. This investment has made a significant impact by focusing on four main areas: jobs and skills training, neighborhood revitalization, small business growth, and financial health.
Because of the impact, 15,469 Detroiters received services to improve their financial health, 13,573 Detroiters participated in job training programs aligned with high-demand industries, and 5,111 businesses received capital or technical assistance.
“JPMorgan Chase stepped up to support Detroit at a critical time in our history,” says Detroit Mayor Mike Duggan. “There’s more work to do, and I’m glad JPMorgan Chase is expanding their investment in the Motor City. Their investment has proven to others that Detroit is a good bet.”
In addition to offering capital and philanthropic support, the skills and expertise of JPMorgan Chase employees have helped local nonprofits solve challenges as part of its Detroit Service Corps. Over the last five years, JPMorgan Chase deployed 146 employees from 16 countries to work on 40 projects for 28 Detroit nonprofits, totaling 21,900 hours of pro bono support.
Also since 2014, JPMorgan Chase’s Community Development Bank Group has facilitated nearly $150 million in new markets and historic tax credit transactions as well as construction loans to affordable housing projects throughout Detroit. These construction loans contributed to the development of 747 units of affordable housing, grocery stores, schools, and commercial space. The Community Development Bank intends to facilitate an additional $150 million to create affordable, sustainable neighborhoods in Detroit.
To give black families and Detroiters increased access to economic opportunity and upward mobility, JPMorgan Chase’s new investment will support initiatives around four key areas: improving access to homeownership and affordable housing ($20 million), boosting black entrepreneurs ($12 million), investing in job training and the future of work ($10 million), and financial health ($8 million).
“JPMorgan Chase is committed to Detroit. With their partnership we have been able to double down on efforts to revitalize our neighborhoods and grow opportunities across our great city,” says Andre Spivey, of the Detroit City Council. “I commend their work and look forward to continuing the partnership.”
JPMorgan Chase and Co. is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The firm offers investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase and Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional, and government clients under its J.P. Morgan and Chase brands.