JPMorgan Chase Commits $15 Million to Expand Economic Growth in Detroit’s Neighborhoods
February 21 2019 - 1:00PM
Business Wire
New investment in Strategic Neighborhood Fund
is part of JPMorgan Chase’s $150 million commitment to Detroit’s
comeback
JPMorgan Chase has committed $15 million to support Detroit’s
neighborhoods to help more Detroit residents benefit from the
city’s continued economic recovery. As part of JPMorgan Chase’s
$150 million, five-year commitment to Detroit, this new investment,
which combines a $10 million, long-term, low-cost loan and $5
million in philanthropy, is expected to expand economic opportunity
in these neighborhoods.
These commitments will enable the Strategic Neighborhood Fund to
finance critical neighborhood projects that lack access to
traditional financing, help attract additional capital, and over
time provide local residents with more access to affordable housing
and goods and services where they live and work.
The announcement was made today at the Detroit School of Digital
Technology in Southwest Detroit with senior JPMorgan Chase,
community and government leaders.
"With the help of partners like JPMorgan Chase, we are taking
the successful strategies that worked in our Downtown and Midtown
areas and scaling it to bring physical improvements and development
to neighborhoods across our city,” said Detroit Mayor
Mike Duggan. "We’ve got a lot more work to do
and together, we’ll expand the good work being done
to ensure more Detroiters are participating in the
comeback."
This new commitment is primarily targeted towards projects in
commercial corridors across ten neighborhoods. These neighborhoods
were selected because they are crucial to extending Detroit’s
economic recovery to more residents, support local small
businesses, and provide quality jobs.
“There are so many clear signs of recovery across Detroit. The
leadership of the Mayor and the strategic focus of so many partners
has truly been the key to this progress,” said Peter Scher,
Head of Corporate Responsibility, JPMorgan Chase. “We want
this growth to benefit all Detroiters, especially those who have
lived here their whole lives. That’s why we continue to invest our
long-term capital in more neighborhoods.”
A History of Sustainable Investments in Detroit
JPMorgan Chase is combining its business and philanthropic
expertise to address some of Detroit’s biggest economic challenges.
In 2014, JPMorgan Chase helped launch two community development
loan funds in Detroit -- the Detroit Neighborhoods Fund and Chase
Invest Detroit Fund through two Community Development Financial
Institutions (CDFIs)—Capital Impact Partners and Invest
Detroit.
These funds, which included $40 million in low-cost debt from
JPMorgan Chase, helped finance the construction of mixed-use real
estate development, affordable multi-family housing and high
quality residential, commercial and retail developments, as well as
provided flexible capital for small and medium-sized businesses
throughout Detroit.
In total, these funds have leveraged over $230 million in
additional funding from outside sources to support residential and
commercial development. The loans helped create 828 residential
housing units, 296,000 square feet of commercial space and created
or saved 538 jobs.
Also since 2014, JPMorgan Chase’s Community Development Bank
Group contributed nearly $150 million in New Markets and Historic
Tax Credit transactions and construction loans to affordable
housing projects throughout Detroit for the development of 747
units of affordable housing, as well as grocery stores, schools and
commercial space.
Looking ahead, the firm’s new $15 million commitment supports a
market-based approach to creating sustainable loan programs for
residential and commercial development, small business access to
capital and home rehabilitation.
In addition to offering capital and philanthropic support, the
firm has contributed the skills and expertise of its employees to
build the capacity of its nonprofit partners. In 2017, four
employees from JPMorgan Chase’s Service Corps were embedded with
Invest Detroit to assist with developing Strategic Neighborhood
Fund metrics as well as a framework for prioritizing neighborhoods
for successful future development.
“JPMorgan Chase’s original investment of resources and expertise
transformed our capacity so that we could start to bring
revitalization tools into the neighborhoods,” said David
Blaszkiewicz, President and CEO, Invest Detroit. “This
additional investment allows us to greatly expand this tested and
measurable approach that JPMorgan Chase was so instrumental in
creating.”
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 Invest Detroit
Invest Detroit is a mission-driven lender, investor, and partner
that supports business and real estate projects that will ignite
economic growth in Detroit. Invest Detroit’s goal is to increase
density and job opportunities in a way that is strategic and
inclusive.
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version on businesswire.com: https://www.businesswire.com/news/home/20190221005718/en/
JPMorgan Chase Contact:Stephanie Bosh,
Stephanie.a.bosh@jpmorgan.com
Invest Detroit Contact:Dan Austin, dan@vandykehorn.com
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