First Midwest Bank, U.S. Bank, The Coleman
Foundation, Robert R. McCormick Foundation, The Chicago Community
Trust and Providence Bank & Trust Join JPMorgan Chase and Fifth
Third to Make New $3.6 Million Investment
In One Year, the Initiative Has Made Over 130
Loans in Chicago to Create More Economic Opportunities for
Entrepreneurs of Color
Accion Chicago (Accion) and Local Initiatives Support
Corporation (LISC) – the Entrepreneurs of Color Fund’s nonprofit
partners in Chicago - today announced $3.6 million in new
investments from six leading institutions: First Midwest Bank, U.S.
Bank, The Coleman Foundation, McCormick Foundation, The Chicago
Community Trust and Providence Bank & Trust. The new
investments, which will be paired with business coaching and
mentorship for small businesses, bring the total funding committed
to the Entrepreneurs of Color Fund to over $9 million to support
minority entrepreneurs on Chicago’s South and West sides.
The Entrepreneurs of Color Fund supports the work of nonprofit
lenders Accion and LISC to provide capital to minority-owned small
businesses and stimulate economic growth by boosting commercial
activity and helping create jobs on the South and West sides. The
initiative was launched in July 2018 with initial financial support
from JPMorgan Chase and Fifth Third Bank.
“Small businesses are the backbone of our city’s economy,
providing needed jobs, services, and opportunity to our families
and residents in every neighborhood across Chicago,” said Mayor
Lori E. Lightfoot. “The Entrepreneurs of Color Fund plays a
critical role in driving small business growth in our communities,
particularly those that have experienced generational
disinvestment, and we are grateful to these newest funders for
stepping up and doing their part as we expand access to capital,
develop entrepreneurial skills, and truly unlock our city's
potential as a beacon of hope and opportunity for all.”
Small businesses are key drivers of growth, and that growth is
fastest among minority and women entrepreneurs. In Chicago, small
businesses employ more than 1 million people. Research shows it
would require only a 9 percent increase in small business jobs, or
less than one job per existing small business, to eliminate
unemployment in Chicago’s low-income neighborhoods.
However, the financial resilience of small businesses varies
across Chicago’s neighborhoods. The JPMorgan Chase Institute found
that small businesses in many South and West Side neighborhoods
have more limited cash reserves than their counterparts on the
North side. For example, small businesses in Englewood are
operating with less than a week of cash reserves in their deposit
accounts compared to 17 days for small businesses in Buena Park –
three times the cash liquidity of their Englewood peers.
“A key tenet of LISC Chicago’s economic development strategy is
that power and wealth comes through ownership. Investing in local
businesses and entrepreneurship is essential to creating community
wealth and power and, is integral to supporting the communities we
serve,” said Meghan Harte, Executive Director of LISC
Chicago. “We are proud to be a partner of the Entrepreneurs of
Color Fund and look forward to continuing working together to
support minority-owned small business owners on the south and west
sides.”
In its first year of operations in Chicago, the initiative has
made over 130 loans totaling more than $1.7 million and resulting
in nearly 400 new or preserved jobs. Fifty-three percent of the
loans support minority women-owned businesses.
The new investments will enable the Entrepreneurs of Color Fund
to build on insights gained during its first year to provide more
minority entrepreneurs in Chicago with critical access to capital,
coaching and other resources needed to support their small
businesses.
“Chicago’s neglected neighborhoods need more jobs. Small
business owners can create those jobs if they receive the loans and
coaching they need to build their businesses,” said Brad
McConnell, CEO of Accion Chicago. “That’s what Accion does, and
that’s what this partnership is about.”
One of the small businesses that received a loan with support
from the Entrepreneurs of Color Fund is Urban Roots, Inc., launched
and managed by Jimmie and Tiffany Williams. The landscaping company
serves residential, commercial and industrial properties across
Chicago and helps to train people with criminal backgrounds with
the skills that they need to connect with jobs after
incarceration.
“The Entrepreneurs of Color Fund gave us the opportunity to grow
and expand our business,” said Jimmie Williams, Entrepreneurs of
Color Fund loan recipient and owner of Urban Roots, Inc. “Now,
we can continue to offer our services across Chicago, help create
more jobs in our neighborhood and give back to our community.”
A History of Impact
The Entrepreneurs of Color Fund was first launched in Detroit in
2015 by JPMorgan Chase, along with W.K. Kellogg Foundation and
Detroit Development Fund, to provide minority-owned small
businesses with access to capital and technical assistance. The
fund has since tripled in Detroit to $22 million. In addition, the
Entrepreneurs of Color Fund has expanded to San Francisco, the
South Bronx, the Greater Washington region and Chicago as part of
JPMorgan Chase’s $40 million, three-year commitment to the South
and West sides of the city.
“Small business growth is key to creating economic opportunity
for more people on the South and West sides,” said Charlie
Corrigan, Head of Midwest Philanthropy at JPMorgan Chase. “At
JPMorgan Chase, we are pleased to see businesses, nonprofits and
political leaders come together to help minority entrepreneurs get
a fair shot at achieving their dreams.”
Eligible entrepreneurs can run new or existing businesses,
allowing more businesses to stay local and invest in their
neighborhoods. These entrepreneurs are typically unable to qualify
for traditional loans, often due to previous credit challenges,
limited financial collateral, short business history or informal
business practices.
Entrepreneurs seeking small business loans or coaching are
encouraged to contact Accion at 312-275-3000 or LISC at
312-422-9550.
About Accion Chicago
Accion helps neighborhood entrepreneurs grow by providing the
capital, coaching, and connections small business owners need to
create wealth and jobs throughout Illinois and Indiana. By
partnering with entrepreneurs, Accion offers the most
cost-effective way to invest in underserved communities. Accion
offers small business loans between $500 and $100,000 to qualified
borrowers and provides free coaching to any entrepreneur who wants
to grow their business. Learn more at us.accion.org/chicago.
About LISC
With residents and partners, LISC forges resilient and inclusive
communities of opportunity across America – great places to live,
work, visit, do business and raise families. Since 1979, LISC has
invested $18.6 billion to build or rehab 376,000 affordable homes
and apartments and develop 63 million square feet of retail,
community and educational space. To learn more, visit
www.lisc.org
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (JPM) is a leading global financial
services firm with assets of $2.7 trillion and operations
worldwide. The Firm is a leader in 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 & 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. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio and the indirect parent company
of Fifth Third Bank, an Ohio-chartered bank. As of June 30, 2019,
Fifth Third had $169 billion in assets and operated 1,207
full-service Banking Centers and 2,551 ATMs with Fifth Third
branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida,
Tennessee, West Virginia, Georgia and North Carolina. In total,
Fifth Third provides its customers with access to approximately
53,000 fee-free ATMs across the United States. Fifth Third operates
four main businesses: Commercial Banking, Branch Banking, Consumer
Lending and Wealth & Asset Management. Investor information and
press releases can be viewed at www.53.com. Member FDIC.
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version on businesswire.com: https://www.businesswire.com/news/home/20190925005521/en/
Media Contacts:
Ashleigh Wayland, awayland@lisc.org Jackie Blair,
jblair@accionchicago.org Amalia Kontesi,
amalia.kontesi@jpmchase.com Larry Magnesen,
Larry.Magnesen@53.com
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