JPMorgan Chase Commits $20 Million to Revitalize Neighborhoods in Five U.S. Cities
October 19 2016 - 8:00AM
Business Wire
Collaborative partnerships in Detroit, Atlanta,
Chicago, Miami, and New York to develop solutions for distressed
neighborhoods
JPMorgan Chase & Co. today announced $20 million for five
community development organizations working to create economic
opportunity in disadvantaged neighborhoods. As part of the firm’s
$125 million, five-year PRO Neighborhoods initiative, these five
collaborative partnerships will revitalize neighborhoods in their
respective cities that have been left behind by the recovery.
“The 2016 PRO Neighborhoods winners have come to the table with
very exciting partnerships that aim to draw the urban renaissance
and prosperity they are experiencing in their cities into the
deeply distressed neighborhoods where they are working” said
Janis Bowdler, Head of Community Development for Global
Philanthropy, JPMorgan Chase. “We are proud of the innovative
approaches this cohort is taking to delivering capital to
entrepreneurs of color, diverse neighborhoods, and urban food
deserts. Each is using a data-driven approach that will create
opportunities for more people to share in the prosperity of the
local economies of their hometowns of Detroit, Atlanta, Chicago,
Miami and New York.”
PRO Neighborhoods provides the necessary capital to local
community development financial institutions (CDFIs) to address the
drivers of economic opportunity in neighborhoods. These CDFIs work
together to pool resources and expand lending activities for
building health and education facilities, open retail centers and
support community services in area neighborhoods. The first grant
recipients of this new initiative include:
- Detroit Strategic Neighborhoods
Initiative Collaborative (Detroit, MI) - $5 Million. This
alliance will combine new loan capital and unique programs with
existing funding capacity to provide economic development in the
three targeted neighborhoods in Detroit. The focus on helping
distressed neighborhoods is informed by and builds upon JPMorgan
Chase’s $100 million, five-year commitment to the city’s economic
recovery.
“This announcement from JPMorgan Chase is another example of its
deep commitment to Detroit and revitalizing its neighborhoods,”
said Mayor Mike Duggan. “Thanks to this funding, we are
going to start seeing new small businesses open, existing
businesses expand and new residential developments take place in
several key areas of the city. This fits in perfectly with our
strategy to revitalize our neighborhoods.”
- Equity Atlanta Collaborative
(Atlanta, Sandy Springs & Roswell, GA) - $4 Million. This
grant will assist Equity Atlanta in providing critical loan
capital, technical assistance and development to underserved, small
businesses. The collaborative will also create or preserve over 700
affordable housing units, establishing over 1,000 jobs through
small business and housing development.
“I want to thank JPMorgan Chase and the Atlanta Collaborative
for their investment in our most vulnerable neighborhoods,” said
Mayor Kasim Reed. “By providing seed capital for rebuilding,
they allow residents in communities that have been left behind to
access affordable housing and other essential services close to
home. This key partnership between a legacy business and a local
nonprofit will leverage homegrown expertise and technical
assistance to give residents an opportunity to thrive and join the
prosperity of our growing City.”
- Neighborhood Retail-Chicago
Collaborative (Chicago, IL) - $3.5 Million. The Community
Development Retail Fund aims to provide technical assistance
services and loans for commercial developments that provide
higher-quality goods and services; offers jobs to local residents;
gives existing and new businesses more opportunity and support to
grow wealth; and reduces blight in chronically distressed
Chicagoland neighborhoods.
“This initiative will generate investment and economic
opportunities that will reach neighborhoods across the city of
Chicago,” said Chicago Deputy Mayor and Chief Neighborhood
Economic Development Officer Andrea Zopp. “By investing in
these neighborhood businesses we can strengthen entire
communities.”
- North-Miami-Dade CDFI Collaborative
(Opa-locka and Liberty City, FL) - $3.65 Million. This alliance
will build upon their previous work in Opa-locka and Liberty City,
communities that have had long-standing, systemic challenges of low
incomes, poverty, unemployment, dilapidated housing, lower
education, food deserts and poor healthcare. The group will invest
in housing, commercial and small business developments as part of
broader, comprehensive neighborhood revitalization initiatives that
also include arts, education and healthcare.
“We need to do more to bring the local economic recovery of
Miami deeper into distressed neighborhoods that need the most
support and this collaboration is a big step in the right
direction,” said Mayor Tomas Regalado. “Thanks to some
innovative thinking and important economic support, some of our
hardest hit communities with the most urgent need will see better,
more affordable housing, new jobs, and new local businesses they
deserve.”
- NYC Collaborative (New York, NY) -
$3.36 Million. Over a three year period, the grant will help
finance underserved entrepreneurs with an approximate average loan
size of $43,000. It also expects to provide business/finance
advisory services to over 1,000 entrepreneurs, and over 3 years,
the project expects to create and retain over 1,200 jobs and expand
hundreds of businesses in the target communities.
“It is essential that small businesses have access to capital in
order to launch and grow, and I am pleased that today’s awards will
help meet this important need,” said Gregg Bishop, Commissioner
of the NYC Department of Small Business Services. “We
appreciate our partnership with JP Morgan Chase and will continue
to work with public and private partners to connect small
businesses with the resources they need to succeed.”
- CU Impact (New York, NY) -
$500,000. CU Impact will help to expand the delivery of
innovative products and services in low-income and underserved
communities by transforming the way credit unions deliver financial
services. This group will start by conducting a planning and
capacity building process to launch the CU Impact platform with two
NYC credit unions in 2017 and 2018.
About PRO Neighborhoods
In addition to supporting CDFI partnerships, PRO Neighborhoods
focuses on:
- Holding our annual competition
to identify innovative capital solutions to inclusive economic
development.
- Providing Affordable Housing Seed
Capital to enable local partners to acquire, refurbish, and
provide affordable housing in communities that are at risk of
gentrification.
- Employing data-driven neighborhood
solutions to help cities better understand the most urgent
problems facing distressed neighborhoods. This research helps local
community development organizations better understand the
implications of demographic shifts and help cities become smarter
about what strategies work best and where to apply local
support.
Measuring the Impact of PRO Neighborhoods
According to an impact assessment by The Harvard Joint Center on
Housing Studies, JPMorgan Chase’s 2014, $33 million PRO
Neighborhoods pilot program focused on disadvantaged neighborhoods
allowed 26 CDFIs to raise more than $339 million in
additional capital for local economic and social service projects.
This has resulted in $270 million in loans, financing first-time
home purchases, the preservation and development of 1,975 units of
affordable housing, lending to 331 small businesses and
creating and retaining 4,432 jobs.
Other Notable Statements of Support
“The PRO Neighborhoods grants allowed the CDFIs to expand their
lending and develop new ways to serve low-income communities,” said
Alexander von Hoffman, a senior research fellow at the Harvard
Joint Center for Housing Studies and lead author of the
progress report. “The CDFIs not only leveraged the grants for
additional funding, but also connected with each other and to the
financial markets, which allows them to continue to boost their
lending into the future.”
“There’s a lot of excitement surrounding downtown revitalization
and the comeback of the American city, but we cannot forget that
this prosperity is not equally shared across urban communities,”
said Sarah Rosen Wartell, President of the Urban Institute.
“I’m encouraged by JPMorgan Chase’s PRO Neighborhoods investment in
the distressed neighborhoods too often left behind. With the
critical combination of seed capital, high quality data and the
engagement of CDFIs, this initiative is building the architecture
for measurable change.”
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.5 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 consumers 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.
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