November 22, 2017 (Chicago) – JPMorgan Chase & Co. today announced that it has deployed the first $10 million of its
$40 million, three-year investment to create economic opportunity in Chicago’s underserved neighborhoods. These initial investments are focused on the city’s South and West sides and committed to preparing people for in-demand careers, helping small businesses expand, revitalizing neighborhoods, and improving financial health.
"There is hope for solving Chicago’s greatest challenges if business, civic and nonprofit organizations are willing to work together and focus their investments where it is needed most,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “The collaboration we’ve seen thus far is exciting, and it gives us the confidence to make these investments. We look forward to seeing what impact it can have on creating a prosperous and more hopeful future for Chicagoans on the South and West sides.”
Through these investments, JPMorgan Chase is collaborating with local business, government and nonprofits partners such as Boeing, the Blackstone Charitable Foundation and the Polk Bros Foundation to tackle a lack of economic opportunity, which is the root cause of Chicago’s concentrated poverty, persistent racial and economic inequalities and gun violence. The firm, which has a 150-plus year history in Chicago and nearly 14,000 employees in the area, is relying on data and the expertise of its employees to maximize the impact of its philanthropic investments and help nonprofit partners expand and help underserved Chicagoans.
Specifically, the initial investments are focused on equipping workers with critical skills, helping women and minority-owned entrepreneurs by providing them with the capital and expertise they need to grow, revitalizing underserved neighborhoods by investing in locally driven solutions and helping individuals get the skills and tools needed to build strong financial futures.
Workforce Readiness–$5.7 million
Investments are helping to develop a data-driven city workforce investment strategy and help address unemployment in some of Chicago’s South and West Side neighborhoods, which exceeds 30 percent. These programs work to help Chicagoans get the skills they need to secure high-quality jobs in growing fields like healthcare and advanced manufacturing.
Notable partners and investments include the Brazier Foundation’s Robotics Technician Training & Support Program, North Lawndale Employment Network’s Moving Forward Rail and Diesel Mechanic Training, Rush University Medical Center’s Health IT Pathways for Chicago Public School Students and Heartland Alliance’s Rapid Employment and Development Initiative.
Investment Spotlight – The North Lawndale Employment Network’s Moving Forward Bridges to Career Opportunities program partners with the Chicago Transit Authority on an eight to twelve-week rail and diesel mechanic training program that primarily serves low-income residents on the West side, many of whom are returning from incarceration. The program helps solve a labor force challenge for the Chicago Transit Authority and other area employers that are having difficulty finding a pipeline of trained diesel mechanics for good- paying jobs in Chicago’s growing Transportation, Distribution, and Logistics sector. Diesel mechanics can earn as much as $30/hour.
“The Moving Program is a win-win for the West side,” said Brenda Palms-Barber, Executive Director, North Lawndale Employment Network. “We are solving a major labor program for the Chicago Transit Authority and providing Chicagoans with living wage jobs that put them on a path to good careers in a growing industry. We’re grateful for JPMorgan Chase’s continued support of our organization and the North Lawndale community and those who have struggled to get back on their feet and create a better life for themselves and their families.”
Neighborhood Revitalization–$1.9 million
Investments provide capital to rebuild and transform Chicago’s neighborhoods by financing and leveraging capital for residential, commercial and retail development projects that often lack access to conventional financing, spurring others to invest.
Notable partners and investments include Community Investment Corporation, IFF, Community Facilities Fund and the Metropolitan Planning Council.
Investment Spotlight – To strengthen the nonprofit sector on the South and West sides, JPMorgan Chase is investing in two new programs through IFF (formerly the Illinois Facilities Fund). The first investment establishes the Chicago Community Facilities Fund to provide financial resources for nonprofits in Chicago to improve access to healthy food, childcare, healthcare and job services through new community facilities. A second investment will help approximately 20 Chicago-based nonprofits improve their financials and grow their real estate and net assets. The initial nonprofits working to strengthen and expand their organizations include Albany Park Community Center, Austin Coming Together, BUILD, Inc., Centers for New Horizons, Chinese Mutual Aid Association, Greater Chatham Initiative, La Casa Norte, LUCHA, National Latino Education Institute, and the North Lawndale Employment Network.
“We are so proud to work with JPMorgan Chase to invest in and strengthen Chicago’s network of nonprofits,” said Joe Neri, President and Chief Executive Officer, IFF. “We couldn’t do this work without the help from JPMorgan Chase. Together, the nonprofits we work with are making a difference in the lives of Chicagoans, from providing access to fresh and healthy food, healthcare and a better education, they’re an essential part of the social fabric of our communities.”
Small Businesses Development–$2 million
Investments are helping to drive economic stability by assisting small businesses in creating jobs and stimulating innovation in neighborhoods by expanding access to capital and technical assistance to primarily minority-owned small businesses and entrepreneurs on Chicago’s South and West sides.
Notable partners and investments include Blue 1647, Women’s Business Development Center/ScaleUp Greater Englewood, Illinois Hispanic Chamber of Commerce Hispanic Tech Incubator, 1871’s Chicagoland Entrepreneurial Center and ASCEND 2020.
Investment Spotlight – JPMorgan Chase’s investment will allow the Women’s Business Development Center (WBDC) to expand into the Englewood neighborhood on Chicago’s South side, delivering business services, ongoing mentorship and technical assistance, access to growth capital or direct lending, and expanded networks to neighborhood-based entrepreneurs. In 2015, WBDC was selected to be part of the Small Business Administration's (SBA) inaugural class of eight awardees nationally to deliver a ScaleUp Program to communities with small businesses experiencing slow/no growth due to a lack of a strong economic development infrastructure. WBDC used the SBA funding to launch a pilot in Aurora, Illinois. Based on the success of that pilot, JPMorgan Chase’s support will allow WBDC to expand ScaleUp to Englewood.
"Innovation is the key to growth and if we want our communities to thrive, we have to make it easier for women to get the skills they need to excel with and in the tech field," said Emilia DiMenco, Chief Executive Officer, Women’s Business Development Center. "JPMorgan Chase and WBDC are investing in the future of our workforce—women—and bringing our transformative ScaleUp program to the Englewood neighborhood.”
Investments in financial capability programs support innovative new products and services that leverage technology and insights to help consumers weather financial shocks through increased savings, improved credit and personal asset growth.
Notable partners and investments include Mercy Housing Lakefront, Spanish Coalition for Housing, Local Initiatives Support Corporation and University of Chicago Poverty Lab.
Investment Spotlight – With JPMorgan Chase’s investment, Mercy Housing Lakefront is developing, implementing, and evaluating an asset building program at two of its affordable housing communities, including the recently opened Lofts on Arthington in North Lawndale, serving more than 400 low-income Chicago households. Services provided through the program include financial coaching, matched savings incentives, rent reporting for credit building and partnerships with other organizations for specialized financial products and services. The program is designed to empower residents to better manage their financial futures and reduce inequality in neighborhoods which have historically faced significant barriers to asset building.
“When low-income Chicagoans have access to affordable housing, they have increased financial capacity, and we’re in a unique position to help them reach their goals by integrating asset building programming,” said Mark Angelini, President, Mercy Housing Lakefront. “JPMorgan Chase’s continued support and expertise in both these areas will be integral to reaching and helping more families.”
What’s Next in 2018
Over the next three years, JPMorgan Chase will continue to make investments that help create economic opportunity in Chicago. Upcoming investments and initiatives will continue to combine the firm’s data with its business expertise—including human capital, management expertise, and partnerships.
- The Fellowship Initiative (TFI), a national program created by JPMorgan Chase to prepare young men of color for college and career success, expanded in Chicago this fall to serve a new class of 60 students from over a dozen high schools. Through TFI, Chicago students from economically distressed neighborhoods will participate in intensive academic support and leadership development programming, provided through partnerships with leading Chicago nonprofits like Mikva Challenge, Young Chicago Authors, Bottom Line, Illinois Mentoring Partnership and others. JPMorgan Chase employees volunteer as mentors to the Fellows for three years, supporting their transition to college. The first class of 39 TFI Fellows in Chicago graduated this year, with promising outcomes such as 100 percent high school graduation and college acceptance rates. This year, the program grew nationally to serve students in Chicago, Dallas, Los Angeles, and New York.
- The next group of JPMorgan Chase Service Corps employees will be coming to Chicago in 2018 to support nonprofits in key neighborhoods. This three-week, skills-based volunteer program, allows the firm’s top-performing employees to share their expertise with nonprofit partners to expand their community impact. In total, 45 employees over the next few years will volunteer their expertise with key Chicago nonprofits.
- The JPMorgan Chase Institute, a think tank that draws on the firm’s unique proprietary data, expertise and market access to develop insights into local and global economies, will share new research in 2018 that examines the distance between where Chicagoans live and the locations of the merchants they frequent to purchase every day goods and services. This research, which previously looked at access to everyday goods in Detroit and New York City, will analyze which types of retail are most and least accessible to Chicagoans in key neighborhoods and identify gaps across a range of services and income groups.
About JPMorgan Chase & Co
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.6 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 customers 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.magverry.com.
Stephanie Bosh, [email protected]