JPMorgan Chase Committing $30 Billion For Addressing Racial Wealth Gap

By Annie Baker ● October 12, 2020
  • JPMorgan Chase is pledging $30 billion to help address the racial wealth gap in the U.S. and reduce systemic racism against Black and Latinx people. These are the details.

JPMorgan Chase is pledging $30 billion to help address the racial wealth gap in the U.S. and reduce systemic racism against Black and Latinx people. Over the next five years, the $30 billion commitment will be spread in the form of loans, equity, and direct funding for promoting affordable housing, growing Black and Latinx-owned businesses, building a more diverse workforce, and improving access to banking for communities of color.

According to the Department of Labor, Black and Latinx workers were disproportionately impacted by unemployment during the COVID-19 pandemic. And a portion of the $30 billion allotments will be used for originating an additional 40,000 home-purchase loans for Black and Latinx households and helping 20,000 Black and Latinx households refinance mortgages at lower rates. And JPMorgan will finance 100,000 affordable rental units.

JPMorgan is pledging $2 billion in loans to some 15,000 small businesses in communities of color. And it is spending $750 million with Black and Latinx suppliers.

And JPMorgan is committing to helping one million people open low-cost checking or savings accounts. And JPMorgan will open new branches in underserved communities.

Key Quotes:

“Systemic racism is a tragic part of America’s history. We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”

— Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co.

“We have a responsibility to intentionally drive economic inclusion for people that have been left behind. The COVID-19 crisis has exacerbated long-standing inequities for Black and Latinx people around the world. We are using this catalytic moment to create change and economic opportunities that enhance racial equity for Black and Latinx communities.”

— Brian Lamb, Global Head of Diversity and Inclusion, JPMorgan Chase

“To ensure the Latino community can thrive, we must work together to break down persistent obstacles to opportunity created by systemic racism. JPMorgan Chase’s new commitments will help ensure that the American dream is accessible to more Latinos today, create a multiplier effect through generations, and lead to a stronger country with greater shared prosperity.”

— Janet Murguía, President and CEO, UnidosUS

“America’s racial wealth gap has been a persistent injustice, and it can no longer be tolerated as business as usual. I am heartened to see JPMorgan’s specific, measurable commitments that we believe will address decades of systemic racism toward Black communities – and will bolster the wellbeing of families across the country, as well as our collective economy. We are proud to work alongside JPMorgan Chase to make these changes and help craft conditions for lasting racial equity.”

— Marc Morial, President and CEO, National Urban League

“All Americans deserve equitable access to affordable housing and the physical, emotional and financial security it represents. JPMorgan Chase’s new commitments will help make owning or renting a reality for more Black and Latinx families, whose housing access has been impeded by decades of systemic racism and are now disproportionately affected by the impact of COVID-19. Addressing the affordability crisis, now overlaid with the pandemic, will require many players on many fronts, and these commitments are concrete, meaningful steps in the right direction.”

— Lisa Rice, CEO, National Fair Housing Alliance

“This moment requires leaders and their institutions to shake off the husks of complacency and to stand in transformative solidarity with the more than 100 million in America who face the burdens of a democracy and economy that does not yet allow them to participate, prosper, and reach their full potential. JPMorgan Chase is beginning the journey to answer this call. Its targeted investments in Black and Brown communities, and its leadership advancing public policy ensures all people in America participate in a just society, live in a healthy community of opportunity, and prosper in an equitable economy is the type of creative spark that will usher in America’s renewal.”

— Dr. Michael McAfee, President and CEO, PolicyLink