UPDATE: Oct. 18, 2018: Due to a significant interest in its $500 million AdvancingCities Challenge, JPMorgan Chase has released a memo noting five key things that cities should know when applying for the initiative:
- "Competition drives results" — JPMorgan Chase is looking for applicants that will be competitive in the stakeholders they bring to the table.
- "Collaboration is key" — Applicants should embrace partnerships to solve complex challenges.
- "One application per city" — By endorsing only one application per municipality, leaders show the proposal has full support of the community.
- "Areas of focus reflect areas of expertise" — Applicants should highlight how they can enhance at least two of the following four issues: small business, neighborhood revitalization, financial capability, and jobs and skills.
- "Apply when ready" — If a city isn't ready or chosen for the first application cycle, there will be future opportunities to apply.
JPMorgan Chase notes that nearly 2,000 calls have already been fielded from communities and private entities eager to apply for the Challenge. The application process closes on November 30.
- JPMorgan Chase has launched AdvancingCities, a five-year, $500 million initiative to create greater economic opportunity and inclusive growth in worldwide cities. JPMorgan expects that outside investors will contribute enough capital for the total initiative funding to reach $1.5 billion.
- The company will launch a challenge to find and invest in innovative solutions across up to 30 communities. The proposals are due Nov. 30 and should address social and economic challenges like unemployment, financial insecurity and affordable housing.
- Separate from the AdvancingCities challenge, JPMorgan Chase plans to make other large investments in cities, including the announcement of an international city this fall.
This initiative is different from many city investments because it doesn't seek the flashiest or most buzz-worthy innovations, but rather those that set out to help underserved populations. The design will funnel resources directly to people most in need of an economic boost.
The AdvancingCities initiative will work with local leaders in a few key areas, such as connecting residents with jobs, providing small businesses with resources to thrive and grow and revitalizing neighborhoods experiencing economic hardship by boosting opportunities and preserving affordable housing.
Solutions that are presented through the initiative's challenge should aim not only to help more residents experience prosperity, but also to break down silos with existing municipal programs and strengthen local systems. That highlights the idea that collaborative models achieve greater success and viable partners can come from private, public and nonprofit sectors.
JPMorgan Chase plans to invest in the new batch of cities based on an impact model it found successful in Chicago, Detroit and Washington, DC.
"We are excited to take learnings and best practices from investments in Detroit, Chicago and Washington, DC to more cities and test solutions that can help more people share in the rewards of a growing economy," Peter Scher, Head of Corporate Responsibility for JPMorgan Chase, said in a statement. "We have seen a lot of mayors stepping up and partnering with business and community leaders to do what’s right for their cities."