JPMorgan Chase Commits Over $3.5 Million for Small Business Growth in NYC
The Commitment to NYC is Part of the Firm’s $125 Million National Campaign
New York, October 19, 2016 – JPMorgan Chase & Co. (NYSE: JPM) announced today more than $3.5 million to support both a collaborative of New York City community development financial institutions (CDFIs) to give local small businesses more access to capital, as well as a separate initiative for CDFI credit unions focused on an innovation and product expansion that will improve their work and reach an even greater number of customers in low-income and underserved communities. These grants in New York City are part of JPMorgan Chase’s five-year, $125 million national program called “PRO Neighborhoods”.
Over a three year period, the grant to the CDFI collaborative will help finance underserved entrepreneurs with an approximate average loan size of $43,000. It also expects to provide business/finance advisory services to over 1,000 entrepreneurs, and over 3 years, the project expects to create and retain over 1,200 jobs and expand hundreds of businesses in the target communities.
The NYC collaborative is comprised of three CDFIs focused on small business and microlending in severely underserved neighborhoods in New York City:
The grant to the CDFI credit union partnership will help transform the way in which credit unions deliver financial services like checking and savings accounts on a large scale at low cost, with sustainability in mind, and without losing the hard-earned trust of low-income consumers.
The CDFI credit union partnership with LES People’s Federal Credit Union and Neighborhood Trust Federal Credit Union will be led by National Federation of Community Development Credit Unions.
“Across the country, all 2016 PRO Neighborhoods winners have come to the table with very exciting partnerships that aim to draw the urban renaissance and prosperity they are experiencing in their cities into the deeply distressed neighborhoods where they are working” said Janis Bowdler, Head of Community Development for Global Philanthropy, JPMorgan Chase.
“We are proud of the innovative approaches the 2016 PRO Neighborhoods winners are taking to delivering capital to entrepreneurs of color, diverse neighborhoods, and urban food deserts.”
“It is essential that small businesses have access to capital in order to launch and grow, and I am pleased that today’s awards will help meet this important need,” said Gregg Bishop, Commissioner of the NYC Department of Small Business Services. “We appreciate our partnership with JP Morgan Chase and will continue to work with public and private partners to connect small businesses with the resources they need to succeed.”
In addition to supporting CDFI partnerships, PRO Neighborhoods focuses on:
- Providing Affordable Housing Seed Capital to enable local partners to acquire, refurbish, and provide affordable housing in communities that are at risk of gentrification.
- Employing data-driven neighborhood solutions to help cities better understand the most urgent problems facing distressed neighborhoods. This research helps local community development organizations better understand the implications of demographic shifts and help cities become smarter about what strategies work best and where to apply local support.
About JPMorgan Chase
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, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers 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.jpmorganchase.com.
Accion empowers small business owners through access to capital and financial education. With economic opportunity, our clients go on to build assets, support their families, create jobs and revitalize their local neighborhoods. We are a non-profit microlender, a Community Development Financial Institution (CDFI) and a certified lender in the Small Business Administration’s Microloan Program and 7a Program. We offer small business loans ranging from $500 to $250,000. Our business loans are complemented by in-depth guidance, coaching and an entire support system of peers, mentors and resources. Groundbreaking partnerships, free workshops, webinars and online resources give our clients access to best practices, industry knowledge and professional networks. Learn more at us.accion.org.
About Excelsior Growth Fund
Excelsior Growth Fund (EGF) helps New York State small businesses grow by providing streamlined access to business loans and advisory services. EGF’s signature product, the EGF SmartLoan™, provides up to $100,000 in fast, transparent, and affordable financing through a secure online platform. Larger loans up to $500,000 are also available. EGF is a nonprofit organization and certified by U.S. Department of Treasury as a Community Development Financial Institution (CDFI). Learn more at www.excelsiorgrowthfund.org.
About Renaissance Economic Development Corporation
Renaissance Economic Development Corporation was established in 1997 to provide small businesses in low to moderate income immigrant and minority communities in New York City with access to capital and technical assistance. Its mission is to transform low to moderate-income communities in New York City by increasing economic opportunity and improving the business climate, particularly in communities where the barriers of language, culture and conventional loan underwriting have stymied small businesses. Since its inception, Renaissance has made over 1,000 loans totaling over $43 million in capital to NYC small businesses. Renaissance is a US Treasury Department certified Community Development Financial Institution and Small Business Administration Microlender. It was recently named as one of the top 3 SBA Microlenders in the country. Learn more at renaissance-ny.org.
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