JP Morgan will also provide $2 billion in philanthropic capital over the next five years to drive an inclusive economic recovery and support Black, Latinx and other underserved communities. (Photo: iStockphoto / NNPA)
New commitments and public policy efforts will address key drivers of the racial wealth divide, reduce systemic racism against Black and Latinx people, and support employees
October 8, 2020, via BlackPressUSA – Today, JPMorgan Chase announced new long-term commitments to advance racial equity. The firm will harness its expertise in business, policy and philanthropy and commit an additional $30 billion over the next five years to provide economic opportunity to underserved communities, especially the Black and Latinx communities.
Structural barriers in the U.S. have created profound racial inequalities that have been exacerbated by the COVID-19 pandemic. The existing racial wealth gap puts a strain on families’ economic mobility and restricts the U.S. economy. Building on the firm’s existing investments, this new commitment will drive an inclusive economic recovery, support employees and break down barriers of systemic racism.
“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.”
Over the next five years, the firm expects these new commitments, which include loans, equity and direct funding, to:
- Promote and Expand Affordable Housing and Homeownership for Underserved Communities
- Originate an additional 40,000 home purchase loans for Black and Latinx households. To do this, the firm is committing $8 billion in mortgages. Efforts include:
- Improving key home lending products and offerings, including substantially increasing the Chase Homebuyer Grant in underserved communities.
- Help an additional 20,000 Black and Latinx households achieve lower mortgage payments through refinancing loans. To do this, the firm is committing up to $4 billion in refinancing loans.
- Finance an additional 100,000 affordable rental units. To do this, the firm will provide $14 billion in new loans, equity investments and other efforts to expand affordable housing in underserved communities. Efforts include:
- Investing additional capital in vital community institutions and increasing funding for the construction and rehabilitation of affordable housing for low and moderate-income households nationwide.
- Grow Black- and Latinx-owned Businesses
- Provide an additional 15,000 loans to small businesses in majority-Black and -Latinx communities. To do this, the firm will deliver $2 billion in loans. Efforts include:
- Launching a new program designed to help entrepreneurs in historically underserved areas access coaching, technical assistance and capital.
- Accelerating a digital lending product to better support the needs of small Black- and Latinx-owned businesses seeking quick access to capital.
- Spend an additional $750 million with Black and Latinx suppliers.
- Improve Financial Health and Access to Banking in Black and Latinx Communities
- Help one million people open low-cost checking or savings accounts. To do this, the firm commits to hiring 150 new community managers, opening new Community Center branches in underserved communities and materially increasing marketing spend to reach more customers who are currently underserved, unbanked or underbanked. Other efforts include:
- Continuing to open 100 new branches in low-to-moderate income communities across the country as part of the firm’s market expansion initiative.
- Building awareness and trust in Chase Secure Banking to meet the needs of Black and Latinx unbanked and underbanked households and expand access to traditional banking.
- Invest up to $50 million in the form of capital and deposits in Black and Latinx-led Minority Depository Institutions (MDI) and Community Development Financial Institutions (CDFI), and continue to mentor and advise select MDIs and CDFIs to help them achieve future success.
- Accelerate Investment in our Employees and Build a More Diverse and Inclusive Workforce
- Continue to build a more equitable and representative workforce and hold executives accountable by incorporating priorities and progress into year-end performance evaluations and compensation decisions for members of the Operating Committee and their direct reports.
- Provide financial coaching services to the firm’s U.S. employees.The firm will also provide $2 billion in philanthropic capital over the next five years to drive an inclusive economic recovery and support Black, Latinx and other underserved communities. This extends and increases the firm’s current five-year $1.75 billion philanthropic commitment made in 2018. It will also include an emphasis on supporting Black- and Latinx-led organizations.
A fact sheet detailing JPMorgan Chase’s new commitments is available here.
Holding Ourselves Accountable
Measuring impact and ensuring accountability is central to these new commitments. Progress will be tracked regularly and shared with senior leadership across the firm, as well as externally with the Chase Advisory Panel, to assess performance and hold the business accountable.
These efforts will further allow for maximum impact and bring an enhanced equity lens to the firm’s business.
Comments on the Importance of Advancing Racial Equity
“We have a responsibility to intentionally drive economic inclusion for people that have been left behind,” said Brian Lamb, Global Head of Diversity and Inclusion, JPMorgan Chase. “The COVID-19 crisis has exacerbated long-standing inequities for Black and Latinx people around the world. We are using this catalytic moment to create change and economic opportunities that enhance racial equity for Black and Latinx communities.”
“To ensure the Latino community can thrive, we must work together to break down persistent obstacles to opportunity created by systemic racism,” said Janet Murguía, President and CEO, UnidosUS. “JPMorgan Chase’s new commitments will help ensure that the American dream is accessible to more Latinos today, create a multiplier effect through generations, and lead to a stronger country with greater shared prosperity.”
“America’s racial wealth gap has been a persistent injustice, and it can no longer be tolerated as business as usual,” said Marc Morial, President and CEO, National Urban League. “I am heartened to see JPMorgan’s specific, measurable commitments that we believe will address decades of systemic racism toward Black communities – and will bolster the wellbeing of families across the country, as well as our collective economy. We are proud to work alongside JPMorgan Chase to make these changes and help craft conditions for lasting racial equity.”
“All Americans deserve equitable access to affordable housing and the physical, emotional and financial security it represents,” said Lisa Rice, CEO, National Fair Housing Alliance. “JPMorgan Chase’s new commitments will help make owning or renting a reality for more Black and Latinx families, whose housing access has been impeded by decades of systemic racism and are now disproportionately affected by the impact of COVID-19. Addressing the affordability crisis, now overlaid with the pandemic, will require many players on many fronts, and these commitments are concrete, meaningful steps in the right direction.”
“This moment requires leaders and their institutions to shake off the husks of complacency and to stand in transformative solidarity with the more than 100 million in America who face the burdens of a democracy and economy that does not yet allow them to participate, prosper, and reach their full potential,” said Dr. Michael McAfee, President and CEO, PolicyLink. “JPMorgan Chase is beginning the journey to answer this call. Its targeted investments in Black and Brown communities and its leadership advancing public policy ensures all people in America participate in a just society, live in a healthy community of opportunity, and prosper in an equitable economy is the type of creative spark that will usher in America’s renewal.”