NEW YORK--(BUSINESS WIRE)--Continuing its support of small businesses, Chase announced today $25 million in grants to Community Development Financial Institutions (CDFIs) serving hard-to-reach communities.
The newest initiative in today’s challenging credit environment is part of Chase’s $100 million commitment to strengthen CDFIs, which are financial institutions that lend to low-income persons and businesses in struggling communities for community development purposes.
“I am proud to further increase our support for small businesses with $25 million in grants to CDFIs,” said Jamie Dimon, Chairman & CEO of JPMorgan Chase. “Small businesses are critical to our economy and they need permanent capital to strengthen their balance sheets in order to grow. Our $25 million funding initiative, when leveraged with private capital and government programs, will increase lending to small businesses by $125 to $250 million.”
Grants range from $2 million to $5 million for institutions across the country:
- ACCION Texas-Louisiana, an alternative lender in Texas and Louisiana
- Valley Economic Development Center, Inc., the largest nonprofit small business development corporation in Los Angeles, California
- Opportunity Fund, a lender and technical assistance provider that meets the capital needs of low-income entrepreneurs in the San Francisco Bay Area
- First State Community Loan Fund, a growing CDFI that provides significant lending and technical assistance in Delaware, and
- Enterprise Cascadia, a creditor and consultant to small businesses, community facilities, nonprofit organizations and consumers in Washington and Oregon
These grants will in most cases double the existing capital bases of the organizations and allow them to grow in a way they cannot today. Additional grants will be announced at a later date.
“We thank Chase for its generous support and continued leadership in the CDFI industry,” said Jeannine Jacokes, Chair of the CDFI Coalition. “With these funds, the industry will be able to continue its efforts to further small business growth and strengthen some of our most underserved communities.”
Over the last 18 months, Chase has taken additional steps to support small businesses, including lending 40 percent more in 2010, becoming the #1 Small Business Administration lender in the United States and encouraging economic development through innovative programs such as Chase’s “Loan for Hire,” which reduced the interest rate on a small business loan for every new employee the business hires.
Chase has partnered with top-tier CDFIs for more than 20 years and remains a national leader in its financing. Over the last three years, Chase provided more than $1 billion in loans, grants and investments to CDFIs and their affiliates, committing $100 million toward CDFIs last year: $50 million for charter schools, in conjunction with a larger $325 million charter school initiative; $25 million to small businesses; and $25 million for other community needs, to be announced at a later date.
Nationwide, there are more than 1,000 CDFIs with a collective $25 billion in assets. The primary mission of CDFIs is community development and the development of programs and strategies to meet the needs of low-income communities. CDFIs provide comprehensive credit, investment, banking and development services and are certified by the U.S. Department of Treasury’s CDFI Fund. They have lent and invested billions of dollars in our nation’s most distressed and underserved communities, through innovative products and services that effectively meet the needs of low-income individuals and communities, and respond quickly and effectively to community needs in a way traditional financial services firms cannot.
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. Chase serves consumers and small businesses through 5,200 bank branches, 16,000 ATMs, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships and schools and universities. Chase also has 90 million credit cards issued. More information about Chase is available at www.chase.com.
Ann Marie Hauser, 212-622-0293