JPMorgan's plan to help Chicago's poorest neighborhoods

The bank is expanding its initiative to help minority business owners in the Windy City. CEO Jamie Dimon tells Christine Romans that just one loan can lift a community.

Posted: Jul 20, 2018 6:54 PM
Updated: Jul 20, 2018 6:54 PM

JPMorgan Chase has pumped millions of dollars into supporting entrepreneurs of color in Detroit, New York City and San Francisco.

Now it's taking its Entrepreneurs of Color Fund to Chicago.

The bank announced Thursday that it would invest $4 million to provide minority entrepreneurs in Chicago's South Side and West Side with the money and resources necessary to get their businesses off the ground.

"South and West Side neighborhoods hold tremendous economic opportunity, but we can do more to ensure that everyone has a chance to participate in Chicago's continued growth," CEO Jamie Dimon said in a statement.

JPMorgan will put $3 million into the Entrepreneurs of Color Fund in Chicago, while $1 million will fund mentoring programs for minority entrepreneurs at the University of Chicago and Northwestern University. Ohio-based Fifth Third Bank also plans to contribute $2.5 million to the Chicago fund, JPMorgan said.

The banks grant the money to local partners, who then extend loans to small business owners. In Chicago, JPMorgan will partner with Accion Chicago and Local Initiatives Support Corporation.

In recent years, JPMorgan has focused a good chunk of its giving on economic development in underserved communities.

The bank created its first Entrepreneurs of Color Fund in Detroit along with the W.K. Kellogg Foundation and the Detroit Development Fund in 2015, part of its $150 million investment in the city.

The Detroit fund has since tripled in size to $18 million, and has lent or approved more than $5 million to 52 small businesses.

Related: Five years ago Detroit was bankrupt. Now it's coming back

In February, JPMorgan announced that it would invest $3.1 million in a similar fund in San Francisco, and $2 million in a similar fund in New York City's South Bronx.

The bank pointed to Vernita Johnson, who started her own printing business out of a bedroom in Chicago's West Side in 1991, as an example of the type of entrepreneur who could benefit from the new fund.

In 2014, Johnson purchased a 6,000-square-foot space with the help of a $50,000 loan from Accion Chicago.

The move allowed her to start taking on bigger orders and grow her business after she was turned down for loans by traditional banks.

"When you're small, and you're still running in the red, and when your taxes say you're losing money, they tell you, 'Well, you come back next year when you're doing a little bit better,'" Johnson told CNN's Christine Romans in an interview. That causes businesses to stay small, she said.

Now, Johnson uses the space to teach local teenagers about graphic design and screenprinting. She has eight full-time employees and has surpassed $500,000 in annual revenue.

JPMorgan can afford to increase giving right now. Corporate tax cuts and a strong economy have left US banks flush with cash.

The bank reported a second quarter profit of $8.3 billion last week, up 18% from 2017. The previous quarter, JPMorgan hauled in the largest quarterly profit by a US bank ever.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 14372

Reported Deaths: 693
CountyConfirmedDeaths
Hinds92024
Lauderdale69957
Madison68721
Scott62310
Neshoba56534
Jones52519
Forrest51137
DeSoto4936
Leake39512
Rankin3736
Holmes37324
Jackson30013
Copiah2854
Attala27715
Monroe25324
Leflore25030
Lincoln25022
Newton2504
Harrison2457
Lamar2275
Yazoo2233
Pearl River20731
Pike20211
Adams19015
Lowndes1828
Noxubee1696
Washington1636
Warren1587
Oktibbeha15010
Bolivar14911
Wayne1480
Jasper1483
Covington1411
Clarke13517
Smith13311
Kemper13110
Chickasaw12812
Lafayette1254
Lee1175
Carroll11410
Coahoma1133
Marion1129
Winston1051
Clay1043
Lawrence991
Simpson930
Hancock8711
Yalobusha855
Wilkinson859
Itawamba857
Grenada823
Montgomery811
Sunflower783
Union785
Marshall763
Jefferson Davis752
Tippah7111
Tate691
Panola643
Claiborne642
Calhoun614
Webster591
Amite561
Humphreys537
Tunica523
Walthall510
Perry492
Prentiss413
Jefferson400
Choctaw352
Stone300
Pontotoc283
Franklin272
Tishomingo260
Quitman250
Tallahatchie251
George201
Benton140
Alcorn141
Greene111
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 16310

Reported Deaths: 590
CountyConfirmedDeaths
Mobile2085112
Jefferson167397
Montgomery144634
Marshall6609
Tuscaloosa63212
Lee52632
Franklin4986
Shelby47019
Tallapoosa41063
Butler39113
Chambers34024
Madison3154
Elmore3007
Baldwin2829
Walker2821
DeKalb2403
Etowah24011
Dallas2323
Coffee2191
Lowndes21610
Morgan2111
Sumter2106
Autauga1923
Houston1854
Bullock1763
Pike1730
Colbert1612
Calhoun1523
Marengo1506
Choctaw1487
Russell1480
Lauderdale1452
Hale1416
Wilcox1327
Barbour1301
Clarke1282
Randolph1247
Marion11711
St. Clair1081
Pickens964
Dale960
Talladega963
Chilton931
Greene914
Cullman880
Limestone860
Winston770
Covington751
Jackson742
Bibb711
Henry702
Macon672
Crenshaw662
Washington656
Blount531
Escambia483
Lawrence460
Geneva400
Perry360
Conecuh351
Coosa341
Monroe342
Cherokee332
Clay272
Lamar210
Cleburne131
Fayette130
Unassigned00
Tupelo
Clear
70° wxIcon
Hi: 84° Lo: 63°
Feels Like: 70°
Columbus
Few Clouds
74° wxIcon
Hi: 85° Lo: 63°
Feels Like: 74°
Oxford
Clear
66° wxIcon
Hi: 77° Lo: 61°
Feels Like: 66°
Starkville
Scattered Clouds
70° wxIcon
Hi: 83° Lo: 60°
Feels Like: 70°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather