JPMorgan Chase Expands Business Lending Program in Communities of Color

JPMorgan Chase (JPMC), the nation’s largest bank, is expanding its Entrepreneurs of Color Fund to the Washington DC region, following launches over the past two years in Detroit, Chicago, San Francisco, and the South Bronx. Initially investing a total of $12.5 million in these four markets, the bank’s model is to partner with local community development financial institutions (CDFIs) to do the lending and provide technical support, and with local foundations to expand the capital pool.

In Detroit, the fund is located at the Detroit Development Fund, a city-focused CDFI; in San Francisco, in a consortium of CDFIs (Working Solutions, ICA Fund Good Jobs and Pacific Community Ventures); in Chicago, with Accion and LISC; and in the South Bronx, with the collaboration of Excelsior Growth Fund and Accion East Coast. So far, JPMorgan Chase reports that approximately 200 loans have been made to small businesses led by people of color in these four markets.