JPMorgan Chase Commits $350 Million to Grow Black, Latinx and Women-owned Small Businesses

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.

“Black, Latinx and women entrepreneurs face historic challenges to accessing the capital and other resources needed to keep their doors open during the pandemic and ultimately have the opportunity to grow long-term,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. “Now more than ever, business has a responsibility to help solve societal problems. 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.”

JPMorgan Chase’s new five-year, $350 million global commitment will help reduce barriers to capital access and grow thousands of additional underserved businesses by:

• Low-Cost Loans and Equity Investments: Providing low-cost, long-term capital and technical expertise to more underserved entrepreneurs in the U.S., including expanding the Entrepreneurs of Color Fund to new U.S. cities; making direct equity investments in early-stage businesses to help companies like Bitwise Industries, the firm’s initial direct equity investment, drive economic opportunity, including in Black and Latinx communities.
• Policy Solutions: Releasing new data-driven policy solutions through the JPMorgan Chase PolicyCenter to improve Small Business Administration (SBA) programs, including the Community Advantage, government procurement and Small Business Investment Company (SBIC) programs, to better meet the needs of minority- and women-owned small businesses.
• Philanthropy: Making philanthropic investments to build the capacity of diverse-led nonprofits across the globe to more effectively support entrepreneurs, and support the signature Ascend Program, currently active in 13 cities, to provide underserved entrepreneurs with business education, consulting services and partnerships with anchor institutions.

Together, these initiatives will help improve access to capital for Black, Latinx, women and other underserved entrepreneurs and address the racial wealth divide.