Impact Profile - JPMorgan Chase
Supporting Minority Owned Businesses
Sustainable Development Goals:
#5 Gender Equality
#8 Decent Work & Economic Growth
#10 Reduced Inequalities
Increase market awareness
Create new market opportunities
JPMorgan Chase & Co. is one of the oldest financial institutions in the United States with a history dating back over 200 years, operating in over 60 countries, and with over 240,000 employees. JPMorgan Chase serves millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients.
JPMorgan Chase believes more people should have access to opportunity and the chance to move up the economic ladder, particularly in the world’s cities, where the benefits of revitalization are not reaching everyone.
Minority groups interested in becoming entrepreneurs often leave former jobs due to low wage growth, stagnant opportunities, while others often feel discriminated against. Across the nation, minority-owned businesses face the obstacles of access to capital, markets, and social networks, all of which are essential for any business to increase in size and scale. A 2017 report by the Minority Business Development Agency stated that financial institutions are more likely to deny minority-owned companies loans.
In 2015, JPMorgan Chase helped create a fund as part of its $150 million commitment to Detroit’s economic recovery along with the Detroit Development Fund® and the W.K. Kellogg Foundation. Detroit’s Entrepreneurs of Color Fund provides business owners greater access to capital and business assistance. The loans range from $50,000 to $200,000, and businesses can use the capital to expand, finance equipment, address short-term cash flow needs and provide contractor lines of credit.
The goal is to build a ladder of success for these companies that, in turn, impact business, economic, and community development. To date, the fund has lent or approved $4.5 million to more than 43 minority small businesses, resulting in over 600 new or preserved jobs. 53% of the loans support minority women-owned businesses while 70% of the loans support small businesses based in Detroit neighborhoods.
In early 2018, JPMorgan Chase announced it will expand the fund’s model by creating two new funds to help minority entrepreneurs in San Francisco and the South Bronx. The firm is committing more than $5 million across the two cities to provide minority entrepreneurs with critical access to capital, while also recruiting additional investors to the new funds. Learn more here. Follow JPMorgan Chase’s growing growing initiatives in CSR here.
“We want to help more Americans share in the rewards of a growing economy, and with this new fund we will be able to share lessons from our work in Detroit and create meaningful, long-term growth for underserved entrepreneurs.”
---Jamie Dimon, Chairman and CEO, JPMorgan Chase.
Bibliography: About: JPMorgan Chase & Co.; Executive Summary - Disparities in Capital Access between Minority and Non-Minority Businesses; Entrepreneurs of Color Fund supports Detroit die-hards; JPMorgan Chase Expands Entrepreneurs of Color Fund to Drive Inclusive Economic Growth in South Bronx and San Francisco