New long-term, low-cost financing to Chicago
Community Loan Fund builds on JPMorgan Chase’s $40 million
commitment to expand access to economic opportunity
AdvancingCities investment supports critical
projects that lack access to traditional financing and help more
people benefit from economic growth
JPMorgan Chase is committing $10 million in long-term, low-cost
capital to support the sustainable development and preservation of
small business and commercial corridors on Chicago’s South and West
sides. This new capital will expand economic opportunity by
enabling Chicago Community Loan Fund (CCLF) to finance critical
projects that lack access to traditional financing, providing local
residents with access to everyday goods and services.
This capital complements and builds on JPMorgan Chase’s $40
million, three-year philanthropic commitment to Chicago’s South and
West sides, and leverages the firm’s community development banking
expertise in addition to learnings from its proven investment model
in Detroit.
The announcement was made today at an event on the South side
with senior business, community and government leaders, including
JPMorgan Chase Chairman and CEO Jamie Dimon, CCLF President Calvin
Holmes, and Illinois Governor-Elect J.B. Pritzker, among
others.
“We want our support for the South and West sides to be
sustainable and to encourage others to see the benefits of
investing here too,” said Jamie Dimon, JPMorgan Chase Chairman
and CEO. “The partnership between government, business and the
community will help ensure this investment goes where it is needed
most – helping those who have not benefited from Chicago’s
growth.”
“Creating economic opportunity and prosperity in every community
is at the top of my agenda, and I welcome companies like JPMorgan
Chase making investments in neighborhoods across Chicago,” said
Governor-elect J.B. Pritzker. “We can lift up communities
that have been left behind when we work together to promote
economic growth, innovation, and collaboration between the public
and private sectors.”
$10 Million Commitment through AdvancingCities
JPMorgan Chase Institute research found that residents on
Chicago’s South and West side neighborhoods must travel greater
distances to access everyday goods and services. For instance, in
the South Shore and Pullman neighborhoods on the South side,
residents traveled 4.9 and 4.6 miles, respectively, from home for
the typical purchase, while residents in the North side’s West
Ridge and North Park traveled only 1.9 and 1.6 miles. In
addition, research by Boston Consulting Group’s Center for
Illinois’ Future and JPMorgan Chase found that introducing equity
and other patient capital would be critical in boosting investment
in neighborhoods that lack access to capital.
The new, low-cost long-term capital will enable CCLF to create
sustainable loan programs and attract additional outside capital
through its “Activate Retail” brand for the preservation and
development of local commercial real estate and to spur small
business growth and local job creation.
It is the first loan made under the $500 million AdvancingCities
initiative, of which up to $250 million will be low-cost, long-term
capital. This capital combines the firm’s philanthropic efforts
with the lending and investing expertise of its Community
Development Banking business to maximize its impact in Chicago.
JPMorgan Chase’s Commitment to Chicago
In 2017, JPMorgan Chase announced a $40 million, three-year
commitment to create economic opportunity on Chicago’s South and
West sides. So far, the firm has deployed over half of this pledge
using its philanthropic investment model for impact to build jobs,
expand small businesses, revitalize neighborhoods and promote
financial health.
Over the past year:
- JPMorgan Chase launched a $5.5M Chicago
Entrepreneurs of Color Fund which has already closed 37 loans to
West and South side small businesses;
- Instituto College welcomed the
inaugural class of 30 students into its Associate's Degree in
Nursing program in fall 2018;
- Neighborhood Housing Services has
helped improve the average credit score by 12 points, increase
savings by $2,329 and resulted in debt reductions of $4,185 for
Chicagoans; and
- JPMorgan Chase provided seed funding to
Community Investment Corporation to launch the Chicago Opportunity
Investment Fund, which has already preserved 176 units of
mixed-income housing, of which 38 are dedicated as affordable
units.
A Long History of Collaboration between JPMorgan Chase and
CCLF
The $10 million commitment to CCLF will build on the
long-standing collaboration between the two organizations,
including through JPMorgan Chase’s national PRO Neighborhoods
initiative. Financial commitments and technical assistance from
JPMorgan Chase have helped CCLF more than double its total assets
to $87 million, and this new commitment is expected to accelerate
the process of CCLF reaching its goal of $100 million in assets by
2020.
“This new investment propels CCLF’s strategic commitment to
increase commercial retail in low-income neighborhoods in Chicago,”
said Calvin L. Holmes, CCLF President. “This substantial
infusion of capital by JPMorgan Chase will allow our borrowers to
generate jobs for local residents and help their entrepreneurial
tenants of color dismantle barriers to their economic
empowerment.”
A 2016 $3.5 million philanthropic investment to CCLF and Chicago
Neighborhood Initiatives has enabled 16 microloans totaling
$532,000 to small businesses, leveraging an additional $848,000 in
private and public financing and another $400,000 in financing for
a new community center in the Pullman retail corridor.
Since 2014, JPMorgan Chase has provided Chicago CDFIs (Community
Development Financial Institutions) with over $13 million in
philanthropic capital to support the development and preservation
of commercial real estate, small business and affordable housing in
underserved neighborhoods in Chicago.
Finally, JPMorgan Chase’s Service Corps has deployed over 30
employees to date in three-week pro bono engagements in Chicago.
The Service Corps has completed two projects with CCLF since 2017,
which have helped the organization develop and enhance vital
financial models to support their growth. The first project created
an improved liquidity model, resulting in substantial cost savings
for CCLF’s operations. The second created a more efficient pricing
model for CCLF loans to help maximize its impact on local
communities.
Applying Insights from Detroit
The $10 million commitment to CCLF applies learnings from
JPMorgan Chase’s success in Detroit, where $40 million in low-cost
capital supporting CDFIs were leveraged to deploy over $233 million
from outside investors (4:1 ratio). In Detroit, the capital is
being reinvested into critical projects in local neighborhoods.
These investments have helped create 828 residential units, 296,000
square feet of commercial space and created or saved 538 jobs.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.6 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 CCLF
Founded in 1991, Chicago Community Loan Fund is a federally
certified Community Development Financial Institution (CDFI)
providing flexible, affordable and responsible financing and
technical assistance for community stabilization and development
efforts and initiatives that benefit low- to moderate-income
neighborhoods, families and individuals throughout metropolitan
Chicago. To-date, CCLF has closed 461 loans totaling over $194M in
financing that has leveraged an additional $1.3B in public and
private sector capital for community projects. For more
information, please visit cclfchicago.org.
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version on businesswire.com: https://www.businesswire.com/news/home/20181212005499/en/
JPMorgan Chase Contact: Amalia
Kontesiamalia.kontesi@jpmchase.comCCLF Contact: Juan
Calixtojcalixto@cclfchicago.org
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