Jamie Dimon, chief executive officer of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
JPMorgan Chase on Tuesday announced its latest round of initiatives to support banks and credit unions that are primarily owned or directed by people of color, as well as banking institutions that work with underserved communities.
It’s part of JPMorgan’s $30 billion commitment to help address wealth inequality.
“These new initiatives are focused on strengthening minority-owned and diverse-led financial institutions by providing additional access to capital, connections to institutional investors, specialty support for Black-led commercial projects and mentorship and training opportunities,” the bank said in a news release.
JPMorgan announced its initiative last October, following the killings of George Floyd and Breonna Taylor. The ongoing coronavirus pandemic has also highlighted longstanding systemic health and social inequities.
“Systemic racism is a tragic part of America’s history,” Jamie Dimon, CEO of JPMorgan, said in a statement at the time. “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.”
Historically, banks have contributed to inequality through now-banned practices such as redlining. JPMorgan’s peers, such as Bank of America and Citigroup, also made billion-dollar commitments to reduce inequality.
As part of its latest slew of efforts, JPMorgan Chase said it’s invested and committed the first $40 million of its $50 million equity pledge to Black and Latinx-led minority depository institutions.
The firm added that it’s also established a racial equity program, by providing New Markets Tax Credit investment pricing for Black-led, Black-owned and Black-serving nonprofits and businesses.
This tax credit provides investors a tax incentive for investing in low-income communities.
JPMorgan said it will help direct financing from the tax credit to community projects, including shelters, healthcare clinics and small businesses.
The bank is also launching “Empowering Change,” which it called a “unique program supported by Google and in partnership with minority depository institutions and diverse-led community development financial institutions to provide economic opportunity to underserved communities.”
“Google is anchoring the program’s launch with an intent to invest $500 million in the Empower money market share class that will be initially distributed by diverse-led MDIs The Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank,” the company said.
JPMorgan said the program includes a new Empower money market share class for distribution by MDIs and diverse-led CDFIs, as well as an annual donation of 12.5% of revenue received from the management fees on Empower share class assets to support community development.
The bank will also provide access to its resources, including training and education.
Historically, banks have contributed to inequality through now-banned practices including redlining.