JPMorgan Chase has committed $350m over the next five years to help close the racial wealth divide prevalent in Black, Latinx and women-owned small businesses.
In a bid to help reduce barriers to get capital for Black, Latinx, women and underserved small business owners, aid them to recover from the Covid-19 pandemic, as well as support their immediate needs and long-term growth, the financial giant will provide them with low-cost loans, equity investments and improve policy solutions – all of which will comprise of more than 40% of its total commitment.
To add on, $42.5m will be allotted to the Entrepreneurs of Color Fund, which provides funds and low-interest loans to community development financial institutions and minority-owned businesses.
This investment is part of JPMorgan Chase’s broader $30bn commitment to provide economic opportunities for minority communities which it achieves by leveraging its technology, business policy and data.
Commenting on the importance of encouraging Black and Latinx entrepreneurs, chairman and CEO of JPMorgan Chase & Co, Jamie Dimon said, “We’re pulling together our business resources, philanthropy and policy expertise to address the racial wealth gap, give underserved small businesses the support they need to grow, and build a more inclusive economy.”
Additionally, the investment is a need of the hour as Black and Latinx small businesses continue to face massive financial challenges and fewer opportunities to scale their business amid the ongoing pandemic, JPMorgan said.
The financial institution also plans to invest in the Ascend Program, which provides underserved small and medium-sized businesses with financial consulting services.
Copyright © 2021 FinTech Global
