JPMorgan Chase to invest $500M in underserved communities
- 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."
Follow Katie Pyzyk on Twitter