NEW YORK--(BUSINESS WIRE)--
JPMorgan Chase & Co. today announced that it will expand the firm’s commitment to Detroit’s economic recovery, expecting it to reach $150 million by 2019. The announcement comes as the firm exceeded its initial $100 million, five-year investment two years ahead of schedule. The firm has been able to accelerate its investment to support Detroit’s recovery due to strong collaboration between civic, business, and nonprofit leadership, as well as improving economic conditions in the city.
"Detroit’s resurgence is a model for what can be accomplished when leaders work together to create economic growth and opportunity,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “This collaboration allowed us to speed up our investment and extend our commitment over the next two years. Going forward, I hope business, government and nonprofit leaders will see Detroit’s comeback as a shining example of how to put aside differences and work to find meaningful and innovative solutions to our most pressing economic problems.”
“JPMorgan Chase has been a true partner in our work to restore economic growth and opportunity in Detroit,” said Detroit Mayor Mike Duggan. "The firm's investments have enabled thousands of Detroiters to receive training, created new opportunities for entrepreneurs and revitalized neighborhoods. There is more work to do, and I hope our continued partnership will build a thriving economy for all Detroiters."
Since 2014, JPMorgan Chase has invested $107 million in loans and grants in Detroit's economic recovery, including $50 million in community development financing, $25.8 million to revitalize neighborhoods, $15 million for workforce development, $9.5 million for small business expansion, and $6.9 million in additional transformative investments.
The firm’s extended commitment over the next two years will keep pace and build upon the city’s progress, continuing to make coordinated investments of about $30 million focused on creating livable, inclusive and sustainable neighborhoods, arming residents with the skills needed for high-quality, well-paying careers and providing small businesses with the capital they need to succeed. Approximately $13 million in additional resources will be reinvested from loans paid back into two community development investment funds that JPMorgan Chase helped create with Invest Detroit and Capital Impact Partners.
“Our commitment to Detroit has truly been a firmwide effort that goes well beyond our financial investment,” said Peter Scher, Head of Corporate Responsibility, JPMorgan Chase. “We've utilized our firm's data, experience and the expertise of over 100 colleagues from 10 countries who have put their skills to work helping the city tackle some of its biggest economic challenges. As Detroit recovers, I hope our work continues to make an impact and yields lessons that are instructive for others looking to invest in Detroit and create more economic opportunity in their communities.”
JPMorgan Chase is combining its philanthropy and business expertise to address some of Detroit’s biggest economic challenges. The firm is using the same attributes that drive business success – innovation, ingenuity, data and the ability to efficiently marshal human and financial capital –to help solve the city’s pressing economic challenges. More than half of JPMorgan Chase’s investment supports a market-based approach to creating sustainable loan programs for residential and commercial development, small business access to capital and home rehabilitation. Other elements of the investment continue to strengthen underlying organizations and create system-wide changes such as an improved citywide workforce development strategy.
Community Development—$50 Million
Investments have led to financing being provided for 21 projects, with an additional $147 million leveraged from other investors. To date, $274 million in projects are completed or underway with the help of JPMorgan Chase's financing, creating or preserving more than 800 jobs, over 800 housing units and 176,000 square feet of commercial space. Details include:
Launching the Detroit Neighborhoods Fund and Chase Invest
Detroit Fund through two Community Development Financial
Institutions (CDFIs)—Capital Impact Partners and Invest
Detroit. These funds have helped finance rehabilitation and new
construction of mixed-use real estate development, affordable
multi-family housing and high-quality residential, commercial and
retail developments, as well as provide flexible capital for small and
medium-sized businesses in Detroit’s neighborhoods, Midtown and
- Projects include: Global Titanium Inc., Granada Apartments, Hope of Detroit Academy Charter School, Rainer Court Apartments, Sakthi Automotive facility, Shoppes at Woodward, The Plaza, The Scott at Brush Park, The Whitney, a West Village project, and Willy's Overland Lofts.
Small Business Development—$9.5 Million
Investments are helping more than 1,800 small businesses receive technical assistance, $7.2 million in loan and grant capital to 100 small businesses and 700 jobs created or maintained. Details include:
- Establishing the $6.5 million Entrepreneurs of Color Fund to provide Detroit minority-owned small businesses with access to financing and technical assistance.
- Expanding the Detroit Kitchen Connect program to provide food entrepreneurs with shared-use kitchens in neighborhoods.
- Investing $1.7 million in Eastern Market's Shed 5 to help create a new space with a commercial-grade kitchen for food entrepreneurs.
- Providing support for business accelerator and incubator TechTown Detroit to create jobs and build storefronts.
- Partnering with Macomb Community College to launch a $2.7 million Innovation Fund to provide financing to start-up and next-stage companies.
- Sponsoring Detroit Startup Week to connect thousands of entrepreneurs with programming, education and networking resources.
These small business investments are informed by data collected and analyzed by the JPMorgan Chase’s Institute, having shown that consumers are spending more in Detroit’s small businesses than in other U.S. cities.
Workforce Readiness—$15 Million
Investments are helping to develop a data-driven city workforce investment strategy and allowing nearly 15,000 Detroit adults and young people to participate in job skills training programs and receive career and technical education aligned with high-demand industries. Details include:
- Initiating research to empower the Mayor's Workforce Investment Board to better align workforce investments and programs to prepare more Detroiters for good jobs.
- Partnering to develop the first ever Detroit Workforce System Leadership Development Academy to allow 22 Detroit workforce leaders to develop practical solutions for Detroit's workforce challenges.
- Supporting Focus: HOPE, Detroit Employment Solutions Corporation, Goodwill's Flip the Script and Center for Working Families programs, Ecowork's Reclaim Detroit and Greening of Detroit to help train adults and young people for jobs in a variety of industries, including healthcare, informational technology and agriculture.
Neighborhood Revitalization—$25.8 Million
Investments have led to 700 mixed-income housing units created or preserved, financing and counseling to homeowners and 380,000 property parcels surveyed. Details include:
- Supporting Motor City Mapping and People's Property Dashboard to digitize the city's property information and return blighted properties to productive use.
- Supporting community lender Liberty Bank to extend affordable rehabilitation loans to qualified buyers and existing homeowners.
- Enabling Southwest Economic Solutions and U-SNAP-BAC to offer financial coaching and homeownership counseling.
- Partnering to establish the Strategic Neighborhood Fund to provide capital to underserved neighborhoods with a $5 million commitment.
- Seeding Develop Detroit, the first citywide nonprofit focused on providing housing to low- and moderate-income Detroiters through a $4 million, four-year commitment.
Economic Growth—$6.9 Million
Investments have boosted Detroit's transportation capabilities and helped build the capacity of Detroit nonprofits. Investments include:
- Providing $1.5 million, in addition to over $13.5 million in New Market Tax Credit allocations, to facilitate the construction of the M-1 streetcar connecting Midtown and Downtown.
- Mitigating the temporary impact of the M-1 construction on local businesses and helping them remain healthy and vibrant during the construction period.
- Launching the Detroit Service Corps which, since 2014, has sent 68 JPMorgan Chase employees from 10 countries to work with 16 Detroit nonprofits for three intensive weeks, helping them analyze organizational challenges, solve problems and improve their overall chance for success.
JPMorgan Chase's investment has enabled the firm to test solutions, adapt programs and find models that can be applied to other cities. Specifically:
Detroit's Motor City Mapping project has provided significant
insights into how blight mapping can be applied in other cities to
bring community partners together to fight blight.
- JPMorgan Chase has already shared the mapping technology in three Ohio cities: Cleveland, Columbus and Cincinnati.
- Detroit's Entrepreneurs of Color Fund serves as a proof point for investing in minority entrepreneurs and it has informed similar programs in Dallas, Houston, Austin, San Antonio, New Orleans and Atlanta.
JPMorgan Chase's investment will reach $150 million by 2019.
- Future investments will focus on further revitalizing Detroit's neighborhoods, strengthening the city's workforce system and helping minority-owned small businesses grow.
- Additional resources paid back to Invest Detroit and Capital Impact Partners’ community development loan programs, which were started with financing from JPMorgan Chase, will be reinvested.
For more information visit: www.jpmorganchase.com/detroit.
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, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the worlds 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.
Statements of Support
"This continued commitment will help support the great work already happening across the City,” said Senator Debbie Stabenow. “This investment will go a long way to helping small businesses access much-needed capital, training workers for good-paying jobs, and making housing more affordable in our neighborhoods.”
“JPMorgan Chase’s commitment to Detroit’s economic revitalization continues to make a significant difference in the lives of Detroit's residents and small business owners,” said Senator Gary Peters. “I’m pleased that JPMorgan Chase plans to build on their original investment to continue growing this public-private partnership that trains Detroiters for skilled jobs, strengthens our neighborhoods and keeps Detroit on the path towards a brighter future.”
"The Chase Invest Detroit Fund was created to provide and leverage financing for economic development projects that may otherwise not be completed, and in just three years these investments have yielded critical new housing and commercial space options for Detroiters," said Dave Blaszkiewicz, President and CEO, Invest Detroit. "JPMorgan Chase's investment has also enabled us to attract additional funding to increase our economic impact in tipping point neighborhoods, in partnership with the City of Detroit."
"Thanks to the investment by JPMorgan Chase, we have been able to facilitate the development of historic Detroit communities in a way that celebrates the city's dynamic population, provide affordable housing options, and increase access to retail infrastructure," said Melinda Clemons, Senior Loan Officer, Capital Impact Partners. "Our work continues but we are proud of the significant progress made in transforming our city's neighborhoods."
"Through its support of the Entrepreneurs of Color Fund, JPMorgan Chase continues to provide new financial resources and meaningful assistance to minority-owned businesses across Detroit," said Ray Waters, President, Detroit Development Fund. "This past year, the Fund provided loans totaling $3.5 million to 42 Detroit minority businesses, ensuring more Detroit neighborhoods can benefit from increased access to much-needed products, services, and job opportunities."
"TechTown has already served more than 500 businesses through our SWOT City and Retail Boot Camp program, thanks in part to the investment made by JPMorgan Chase," said Ned Staebler, Chief Executive Officer, TechTown. "These programs remove roadblocks to urban innovation and business development in Detroit, helping business get open and stay open. We are happy to have JPMorgan Chase as a partner in this critical effort."
"Commitment to strong economic growth will continue to empower Detroit's recovery," said Michael Rafferty, Vice President of Small Business Development, Detroit Economic Growth Corporation. "JPMorgan Chase embodies this commitment with its ongoing support of small business development and job preparation programs."
"JPMorgan Chase has been a leader in helping Detroit grow a workforce with the skills and preparation necessary for today's jobs," said Jeff Donofrio, Head of Workforce Development, City of Detroit. "The company's resources are critical in our data-driven approach to training and matching Detroiters with employers."
"Thanks to our longstanding partnership with JPMorgan Chase, Focus: HOPE has been able to support workforce training and certification programs for hundreds of job seekers in Detroit," said Jason Lee, CEO, Focus: HOPE. "The firm's support has been crucial to providing new training opportunities for men and women seeking to join or re-enter the city’s workforce."
"The startup capital provided by JPMorgan Chase has enabled us to begin fulfilling our mission to build vibrant, resilient communities for all Detroiters," said Sonya Mays, Chief Executive Officer, Develop Detroit. "Rebuilding Detroit's core housing infrastructure will not happen overnight but already we have made real progress in preserving and creating affordable housing units. We look forward to our continued partnership with JPMorgan Chase as we build on the firm's initial investment to reimagine Detroit's housing options."
"There are no quick fixes to the real estate problems in Detroit, but we found a place to start—making honest property data public to help Detroit residents and community and city leaders make more informed decisions," said Jerry Paffendorf, CEO, LOVELAND Technologies. "It's not easy, but the support of JPMorgan Chase is helping us arm the community with information and facilitate communication to fight blight and tax foreclosure in Detroit."
"The ongoing investment made by JPMorgan Chase allows us to make sure individuals and families in Detroit have access to the information and assistance they need to make smart decisions about their homes," said Linda Smith, Executive Director, U-SNAP-BAC. "We are excited to move forward with our efforts with the continued support of JPMorgan Chase."
JPMorgan Chase & Co.
Steve O'Halloran, 302-282-5699