JPMorgan Chase Commits $20 Million to Revitalize Neighborhoods in Five U.S. Cities

Collaborative partnerships in Detroit, Atlanta, Chicago, Miami, and
New York to develop solutions for distressed neighborhoods

DETROIT–(BUSINESS WIRE)–JPMorgan Chase & Co. today announced $20 million for five community
development organizations working to create economic opportunity in
disadvantaged neighborhoods. As part of the firm’s $125 million,
five-year PRO Neighborhoods initiative, these five collaborative
partnerships will revitalize neighborhoods in their respective cities
that have been left behind by the recovery.

“The 2016 PRO Neighborhoods winners have come to the table with very
exciting partnerships that aim to draw the urban renaissance and
prosperity they are experiencing in their cities into the deeply
distressed neighborhoods where they are working” said Janis Bowdler,
Head of Community Development for Global Philanthropy, JPMorgan Chase
.
“We are proud of the innovative approaches this cohort is taking to
delivering capital to entrepreneurs of color, diverse neighborhoods, and
urban food deserts. Each is using a data-driven approach that will
create opportunities for more people to share in the prosperity of the
local economies of their hometowns of Detroit, Atlanta, Chicago, Miami
and New York.”

PRO Neighborhoods provides the necessary capital to local community
development financial institutions (CDFIs) to address the drivers of
economic opportunity in neighborhoods. These CDFIs work together to pool
resources and expand lending activities for building health and
education facilities, open retail centers and support community services
in area neighborhoods. The first grant recipients of this new initiative
include:

  • Detroit Strategic Neighborhoods Initiative Collaborative (Detroit,
    MI) – $5 Million.
    This alliance will combine new loan capital and
    unique programs with existing funding capacity to provide economic
    development in the three targeted neighborhoods in Detroit. The focus
    on helping distressed neighborhoods is informed by and builds upon
    JPMorgan Chase’s $100 million, five-year commitment to the city’s
    economic recovery.

“This announcement from JPMorgan Chase is another example of its deep
commitment to Detroit and revitalizing its neighborhoods,” said Mayor
Mike Duggan
. “Thanks to this funding, we are going to start seeing
new small businesses open, existing businesses expand and new
residential developments take place in several key areas of the city.
This fits in perfectly with our strategy to revitalize our
neighborhoods.”

  • Equity Atlanta Collaborative (Atlanta, Sandy Springs & Roswell, GA)
    – $4 Million.
    This grant will assist Equity Atlanta in providing
    critical loan capital, technical assistance and development to
    underserved, small businesses. The collaborative will also create or
    preserve over 700 affordable housing units, establishing over 1,000
    jobs through small business and housing development.

“I want to thank JPMorgan Chase and the Atlanta Collaborative for their
investment in our most vulnerable neighborhoods,” said Mayor Kasim
Reed
. “By providing seed capital for rebuilding, they allow
residents in communities that have been left behind to access affordable
housing and other essential services close to home. This key partnership
between a legacy business and a local nonprofit will leverage homegrown
expertise and technical assistance to give residents an opportunity to
thrive and join the prosperity of our growing City.”

  • Neighborhood Retail-Chicago Collaborative (Chicago, IL) – $3.5
    Million.
    The Community Development Retail Fund aims to provide
    technical assistance services and loans for commercial developments
    that provide higher-quality goods and services; offers jobs to local
    residents; gives existing and new businesses more opportunity and
    support to grow wealth; and reduces blight in chronically distressed
    Chicagoland neighborhoods.

“This initiative will generate investment and economic opportunities
that will reach neighborhoods across the city of Chicago,” said Chicago
Deputy Mayor and Chief Neighborhood Economic Development Officer Andrea
Zopp
. “By investing in these neighborhood businesses we can
strengthen entire communities.”

  • North-Miami-Dade CDFI Collaborative (Opa-locka and Liberty City,
    FL) – $3.65 Million.
    This alliance will build upon their previous
    work in Opa-locka and Liberty City, communities that have had
    long-standing, systemic challenges of low incomes, poverty,
    unemployment, dilapidated housing, lower education, food deserts and
    poor healthcare. The group will invest in housing, commercial and
    small business developments as part of broader, comprehensive
    neighborhood revitalization initiatives that also include arts,
    education and healthcare.

“We need to do more to bring the local economic recovery of Miami deeper
into distressed neighborhoods that need the most support and this
collaboration is a big step in the right direction,” said Mayor Tomas
Regalado
. “Thanks to some innovative thinking and important economic
support, some of our hardest hit communities with the most urgent need
will see better, more affordable housing, new jobs, and new local
businesses they deserve.”

  • NYC Collaborative (New York, NY) – $3.36 Million. Over a three
    year period, the grant will help finance underserved entrepreneurs
    with an approximate average loan size of $43,000. It also expects to
    provide business/finance advisory services to over 1,000
    entrepreneurs, and over 3 years, the project expects to create and
    retain over 1,200 jobs and expand hundreds of businesses in the target
    communities.

“It is essential that small businesses have access to capital in order
to launch and grow, and I am pleased that today’s awards will help meet
this important need,” said Gregg Bishop, Commissioner of the NYC
Department of Small Business Services
. “We appreciate our
partnership with JP Morgan Chase and will continue to work with public
and private partners to connect small businesses with the resources they
need to succeed.”

  • CU Impact (New York, NY) – $500,000. CU Impact will help to
    expand the delivery of innovative products and services in low-income
    and underserved communities by transforming the way credit unions
    deliver financial services. This group will start by conducting a
    planning and capacity building process to launch the CU Impact
    platform with two NYC credit unions in 2017 and 2018.

About PRO Neighborhoods

In addition to supporting CDFI partnerships, PRO Neighborhoods focuses
on:

  • Holding our annual competition to identify innovative capital
    solutions to inclusive economic development.
  • Providing Affordable Housing Seed Capital to enable local
    partners to acquire, refurbish, and provide affordable housing in
    communities that are at risk of gentrification.
  • Employing data-driven neighborhood solutions to help cities
    better understand the most urgent problems facing distressed
    neighborhoods. This research helps local community development
    organizations better understand the implications of demographic shifts
    and help cities become smarter about what strategies work best and
    where to apply local support.

Measuring the Impact of PRO Neighborhoods

According to an impact assessment by The Harvard Joint Center on Housing
Studies, JPMorgan Chase’s 2014, $33 million PRO Neighborhoods pilot
program focused on disadvantaged neighborhoods allowed 26 CDFIs to raise
more than $339 million in additional capital for local economic and
social service projects. This has resulted in $270 million in loans,
financing first-time home purchases, the preservation and development of
1,975 units of affordable housing, lending to 331 small businesses and
creating and retaining 4,432 jobs.

Other Notable Statements of Support

“The PRO Neighborhoods grants allowed the CDFIs to expand their lending
and develop new ways to serve low-income communities,” said Alexander
von Hoffman, a senior research fellow at the Harvard Joint Center for
Housing Studies
and lead author of the progress report. “The CDFIs
not only leveraged the grants for additional funding, but also connected
with each other and to the financial markets, which allows them to
continue to boost their lending into the future.”

“There’s a lot of excitement surrounding downtown revitalization and the
comeback of the American city, but we cannot forget that this prosperity
is not equally shared across urban communities,” said Sarah Rosen
Wartell, President of the Urban Institute.
“I’m encouraged by
JPMorgan Chase’s PRO Neighborhoods investment in the distressed
neighborhoods too often left behind. With the critical combination of
seed capital, high quality data and the engagement of CDFIs, this
initiative is building the architecture for measurable change.”

About JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.5 trillion and operations worldwide. The Firm is
a leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing,
and asset management. A component of the Dow Jones Industrial Average,
JPMorgan Chase & Co. serves millions of consumers in the United States
and many of the world’s most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. Information
about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

Contacts

JPMorgan Chase & Co.
Stephanie Bosh, 202-494-1860