JP Morgan Chase announced a $30 billion commitment to boosting the Black and Hispanic communities in an effort to promote diversity and battle racial inequality.
Over the next five years, the company seeks to improve minority homeownership, provide banking to minority communities, provide capital to minority-owned businesses and increase diversity throughout its entire staff.
“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, JPMorgan’s CEO.
“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.”
JPMorgan is pledging $26 billion towards various housing initiative, aiming to increase Black and Latino homeownership through the creation of an additional 40,000 loans for home buyers, while helping 20,000 households refinance their home loans and lower mortgage payments for thousands.
Also, the bank plans to target affordable rental housing by financing an extra 100,000 rental units.
“We have a responsibility to intentionally drive economic inclusion for people that have been left behind,” said JPMorgan’s Global Head of Diversity and Inclusion Brian Lamb, in a statement.
“The COVID-19 crisis has exacerbated long-standing inequities for Black and Latinx people around the world,” Lamb wrote. “We are using this catalytic moment to create change and economic opportunities that enhance racial equity for Black and Latinx communities.”
Additionally, JPMorgan Chase is committed to increasing capital to Balck and Hispanic-owned businesses, pledging to provide an additional 15,000 loans, totaling in $2 billion, to small businesses with those communities.
The bank plans to launch a new program to help entrepreneurs with coaching, technical assistance, and capital. It will also “spend an additional $750 million” with new and existing minority suppliers.