JPMorgan Chase announced new long-term commitments aimed at advancing racial equity.
The firm committed to an additional $30 billion over the next five years to provide economic opportunity to underserved communities, especially the Black and Latinx communities.
JPMorgan Chase is Delaware’s second-largest for-profit private employer with a staff of about 11,000
“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, CEO, JPMorgan Chase & Co. “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.”
Over the next five years, the firm expects these new commitments, which include loans, equity and direct funding, to:
A. Originate an additional 40,000 home purchase loans for Black and Latinx households. To do this, the firm is committing $8 billion in mortgages. Efforts include:
- Improving key home lending products and offerings, including substantially increasing the Chase Homebuyer Grant in underserved communities.
B. Help an additional 20,000 Black and Latinx households achieve lower mortgage payments through refinancing loans. To do this, the firm is committing up to $4 billion in refinancing loans.
C. Finance an additional 100,000 affordable rental units. To do this, the firm will provide $14 billion in new loans, equity investments and other efforts to expand affordable housing in underserved communities. Efforts include:
- Investing additional capital in vital community institutions and increasing funding for the construction and rehabilitation of affordable housing for low and moderate-income households nationwide.
A. Provide an additional 15,000 loans to small businesses in majority-Black and -Latinx communities. To do this, the firm will deliver $2 billion in loans. Efforts include:
- Launching a new program designed to help entrepreneurs in historically underserved areas access coaching, technical assistance and capital.
- Accelerating a digital lending product to better support the needs of small Black- and Latinx-owned businesses seeking quick access to capital.
B. Spend an additional $750 million with Black and Latinx suppliers.
A. Help one million people open low-cost checking or savings accounts. To do this, the firm commits to hiring 150 new community managers, opening new Community Center branches in underserved communities and materially increasing marketing spend to reach more customers who are currently underserved, unbanked or underbanked. Other efforts include:
- Continuing to open 100 new branches in low-to-moderate income communities across the country as part of the firm’s market expansion initiative.
- Building awareness and trust in Chase Secure Banking to meet the needs of Black and Latinx unbanked and underbanked households and expand access to traditional banking.
B. Invest up to $50 million in the form of capital and deposits in Black and Latinx-led Minority Depository Institutions (MDI) and Community Development Financial Institutions (CDFI), and continue to mentor and advise select MDIs and CDFIs to help them achieve future success.
A. Continuing to build a more equitable and representative workforce and hold executives accountable by incorporating priorities and progress into year-end performance evaluations and compensation decisions for members of the Operating Committee and their direct reports.
B. Providing financial coaching services to the firm’s U.S. employees.
The firm will also provide $2 billion in philanthropic capital over the next five years to drive an inclusive economic recovery and support Black, Latinx and other underserved communities. This extends and increases the firm’s current five-year $1.75 billion philanthropic commitment made in 2018. It will also include an emphasis on supporting Black- and Latinx-led organizations.
A fact sheet detailing JPMorgan Chase’s new commitments is available here.
Progress will be tracked regularly and shared with senior leadership across the firm, as well as externally with the Chase Advisory Panel, to assess performance and hold the business accountable.
“We have a responsibility to intentionally drive economic inclusion for people that have been left behind,” said Brian Lamb, global head of diversity and inclusion, JPMorgan Chase. “The Covid-19 crisis has exacerbated long-standing inequities for Black and Latinx people around the world. We are using this catalytic moment to create change and economic opportunities that enhance racial equity for Black and Latinx communities.”