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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.

Cases: 296154

Reported Deaths: 6764
CountyCasesDeaths
DeSoto19700230
Hinds18851392
Harrison16736281
Rankin12757265
Jackson12623228
Lee9694161
Madison9480203
Jones7990147
Forrest7234138
Lauderdale6837226
Lowndes6032140
Lamar589680
Lafayette5740113
Washington5220130
Bolivar4616124
Oktibbeha441593
Panola431995
Pearl River4178131
Warren4134115
Pontotoc410571
Marshall403592
Monroe3990127
Union396174
Neshoba3817169
Lincoln3552104
Hancock348975
Leflore3380118
Sunflower318986
Tate303174
Pike301296
Scott294570
Alcorn292263
Yazoo290565
Itawamba290175
Coahoma281169
Tippah279265
Copiah278758
Simpson276280
Prentiss270258
Wayne254341
Leake252871
Marion252778
Covington249580
Grenada247878
Adams234678
George232145
Newton230852
Winston221877
Jasper213645
Tishomingo212665
Attala206669
Chickasaw201453
Holmes182370
Clay179251
Stone172429
Tallahatchie171239
Clarke169371
Calhoun158028
Smith153033
Yalobusha145036
Greene127833
Walthall124340
Noxubee122831
Montgomery122639
Perry122135
Lawrence120321
Carroll118625
Amite111734
Webster110832
Jefferson Davis102231
Tunica99323
Claiborne98829
Benton93824
Humphreys92927
Kemper90323
Quitman77414
Franklin76119
Choctaw69817
Jefferson62727
Wilkinson62426
Sharkey49117
Issaquena1676
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Alabama Coronavirus Cases

Cases: 497154

Reported Deaths: 10029
CountyCasesDeaths
Jefferson714001387
Mobile36252736
Madison32573462
Tuscaloosa24289414
Montgomery22708519
Shelby22112215
Baldwin19856285
Lee15021155
Calhoun13755288
Morgan13742252
Etowah13379320
Marshall11439210
Houston10110262
Elmore9451185
Limestone9413136
St. Clair9003225
Cullman8979182
Lauderdale8610212
DeKalb8486175
Talladega7582165
Walker6571259
Jackson6542103
Autauga631391
Blount6229127
Colbert5998120
Coffee5259103
Dale4657107
Russell406433
Franklin399778
Covington3989106
Chilton3891100
Escambia378772
Tallapoosa3613143
Clarke343953
Chambers3423111
Dallas3419142
Pike293372
Marion288895
Lawrence284683
Winston258668
Bibb245960
Geneva240270
Marengo238357
Pickens225055
Barbour212951
Hale211969
Fayette201357
Butler201166
Henry182941
Cherokee177739
Monroe166639
Randolph164640
Washington156635
Macon147243
Crenshaw146254
Clay145554
Cleburne139741
Lamar133733
Lowndes132551
Wilcox122525
Bullock117236
Conecuh107024
Perry105927
Sumter99432
Coosa89624
Greene88532
Choctaw55123
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