NEW YORK – JPMorgan Chase on February 23 announced initiatives to further support Minority Investment Institutes (MDIs) and Diversified Community Development Finance Institutions (CDFIs), as part of a announced $ 30 billion pledge recently the company for the promotion of racial equality.
According to a JPMorgan press release, MDIs and CDFIs provide vital financial services in communities that are often protected. To provide this much-needed funding to under-represented communities, many MDIs and CDFIs require additional capital themselves.
These new initiatives aim to strengthen minority language and diversified financial institutions by providing increased access to capital, links for institutional investors, specialist support for Black-led commercial projects and opportunities counseling and training.
JPMorgan announced the $ 30 billion pledge last October, following the killings of George Floyd and Breonna Taylor, CNBC said, “the coronavirus pandemic has also highlighted systemic health and social inequality. ”
“Systematic racism is a terrible part of American history,” Jamie Dimon, a Greek-American CEO of JPMorgan Chase, said in a statement at the time, CNBC said. “We can do more and better to break down systems that have broken down racism and widespread economic inequality, especially for Blacks and Latinx people.”
“Historically, banks have contributed to inequality through now prohibited practices such as redesign,” CNBC said, adding that JPMorgan’s peers, such as Bank of America and Citigroup, made billion-dollar pledges for reduce inequality. ”
As part of its latest efforts, JPMorgan Chase said it has “invested and pledged the first $ 40 million of its $ 50 million equity pledge to Black and Latinx minority ethnic investment institutions , ”CNBC said, adding“ the company said it has also established a race equality program, by offering New Markets Tax Credit investment prices for nonprofits and black-led businesses, black property and black service. ”
“This tax credit provides a tax incentive for investors to invest in low-income communities,” CNBC said, adding “JPMorgan said it will help fund directly from the tax credit to community projects, including shelters, healthcare clinics and small businesses. ”
Also cited in its February 23 statement, JPMorgan Chase has launched Empowering Change, a unique program backed by Google and in partnership with MDIs and CDFIs led by a mix to provide economic access to insufficient communities. The program is designed to allow MDIs and CDFIs to offer new investment products to their customers, boost their technology capabilities and develop new revenue through asset circulation.
Google confirms release of program with intention to invest $ 500 million in Empower money market share class which will initially be released by MDIs under the diversified leadership of Maryland Harbor Bank, Liberty Bank and Trust, M&F Bank and National Bank Unity. This initiative builds on Google’s partnership with Opportunity Finance Network to support CDFIs, and a number of race equality commitments made in 2020.
The Energy of Change program includes:
• Empower’s new power market share class for distribution with mixed-led MDIs and CDFIs, offered across the suite of JP Morgan Asset Management money market funds, allowing institutional clients to support MDIs and CDFIs driven by mixing and creating positive social impact.
• 12.5% annual contribution of management tax revenue on Empower division class funds to support community development
• Access to the depth and breadth of JP Morgan Asset Management’s resources, including Morgan Money’s digital investment platform, sales and marketing and messenger service support
• Training, education and marketing resources for partner companies managed by JPMorgan Chase
The annual grant will be awarded for the life of the Empower division class to the Community Development and Development Fund, a Grant Advisory Fund administered by the Chicago Community Trust that is committed to supporting community development to expand opportunities within communities which is not enough.
More information is available online: www.jpmorganchase.com/impact/path-forward.