JPMorgan Chase Commits $30 Billion to Advance Racial Equity
[ Article was originally posted on www.jpmorganchase.com ]
I. Promote Affordable Housing and Homeownership for Underserved Communities
Black and Latinx households face a housing affordability crisis when it comes to both homeownership and rental opportunities. Homeownership rates are 25% lower for Black and Latinx families and, as rents continue to rise, Black and Latinx households are more likely to be cost-burdened than White households.
Over the next five years, the firm expects to originate an additional 40,000 home purchase loans for Black and Latinx households. To do this, the firm is committing $8 billion in mortgages. The firm is also committing to help an additional 20,000 Black and Latinx households achieve lower mortgage payments by providing up to $4 billion in refinance loans over the next five years.
B. Affordable Rental Housing
Over the next five years, the firm will finance an additional 100,000 affordable rental units. To do this, the firm will provide $14 billion in new loans, equity investments and other efforts to expand affordable housing in underserved communities.
II. Grow Black- and Latinx-owned Businesses
Black and Latinx small business owners face barriers to grow and scale their businesses. Black people represent nearly 13% of the U.S. population but only 4% of small business owners.
A. Small Business Support
Over the next five years, the firm will provide an additional 15,000 loans to small businesses in majority-Black and -Latinx communities. To do this, the firm will deliver $2 billion in loans.
B. Supplier Diversity
III. Improve Financial Health and Access to Banking in Black and Latinx Communities
There are significant racial disparities in the financial health of Black and Latinx households, which serve as a barrier to achieve financial stability, meet their long-term financial goals and build wealth. According to the JPMorgan Chase Institute, Black and Latinx families have 32 and 47 cents in liquid assets for every $1 held by White families.
A. Financial Health
Over the next five years, the firm expects to help one million people open new low-cost checking or savings accounts. To do this, the firm commits to hiring 150 new community managers, open new Community Center branches in underserved communities and materially increase marketing spend to reach more customers who are currently underserved, unbanked or underbanked.
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