JPMorgan Chase : Commits $350 Million to Grow Black, Latinx and Women-owned Small Businesses
Firm invests $42.5 million to expand successful Entrepreneurs of Color Fund to more U.S. cities and introduces data-driven policy solutions to increase access to capital for historically underserved entrepreneurs
Today, JPMorgan Chase announced a new $350 million, five-year global commitment to grow Black, Latinx, women-owned and other underserved small businesses, help address the racial wealth divide and create a more inclusive recovery from the COVID-19 pandemic.
The pandemic has exacerbated historic challenges for Black, Latinx, women and other underserved small businesses to access necessary capital to sustain and grow. According to the JPMorgan Chase Institute, Black, Latinx and women-owned small businesses are underrepresented among firms with substantial external financing, limiting opportunities to scale their business. Further, financial challenges faced by Black and Latinx small businesses are more substantial relative to white-owned businesses, meaning they are especially vulnerable in today’s environment.
This new commitment, which combines low-cost loans, equity investments and philanthropy, will help reduce barriers to capital for underserved small businesses to support their immediate needs and long-term growth. More than 40% of the commitment will be low-cost loans and equity investments, removing a critical barrier for Black, Latinx, women and other underserved entrepreneurs.
The investment is part of JPMorgan Chase’s $30 billion commitment to provide economic opportunity to underserved communities, especially the Black and Latinx communities, by harnessing its business, policy, data and philanthropic expertise.
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