JPMorgan Chase has committed $30 billion over the next five years to provide economic opportunity to underserved communities, especially the Black and Latinx communities.
“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. in announcing the offering. “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.”
The firm’s new commitments—which include loans, equity and direct funding—will largely go toward promoting and expanding affordable housing and homeownership for underserved communities in several ways.
It will originate 40,000 home purchase loans for Black and Latinx households by committing $8 billion in mortgages. That will be accomplished by JP Morgan upgrading its key home lending products and substantially increasing the Chase Homebuyer Grant in underserved communities.
Also as part of the affordable housing piece of the initiative, the firm plans to help 20,000 Black and Latinx households achieve lower mortgage payments with a $4 billion commitment in refinancing loans, and finance an additional 100,000 affordable rental units with $14 billion in new loans, equity investments and other efforts. Among those, JPMorgan will invest additional capital in community institutions and increase funding for the construction and redevelopment of affordable housing.
“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.”
The firm also will use the funds to grow Black and Latinx-owned businesses with $2 billion in loans, and by spending $750 million with Black and Latinx suppliers; improve Black and Latinx communities’ financial health and access to banking; and work to create a more diverse and inclusive workforce.
In addition, the firm plans to provide $2 billion in philanthropic capital over the next five years to help orchestrate an inclusive economic recovery and to support the Black, Latinx and other underserved communities. This commitment extends and increases JP Morgan’s current five-year $1.75 billion philanthropic commitment, which was made in 2018.