JPMorgan Chase announces $100M Detroit investment

JPMorgan Chase announces $100M Detroit investment

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DETROIT (AP) -- Financial giant JPMorgan Chase has confirmed plans to invest $100 million over five years into Detroit to support and accelerate the bankrupt city's economic recovery.

JPMorgan Chase Chairman and CEO Jamie Dimon will announce the bank's commitment today during a luncheon with community and government leaders at The Garden Theater in Detroit.

For Fox 2 News app users, CLICK HERE TO WATCH A REPLAY OF THE EVENT.>>
 
The money announced Wednesday will be divvied up in loans and grants and includes funding for home mortgage loans, job training for Detroit residents and blight removal.
 
In a statement, JPMorgan Chase Chief Executive Jamie Dimon said: "We believe in Detroit's future, and we want to see the city recover its economic strength."
 
Chase has more than 2,500 southeast Michigan employees.
 
Chase plans to put $50 million into Invest Detroit and Capital Impact Partners, which currently loans to Detroit development projects. Some $25 million will help with blight removal and other efforts. Chase also will use $12.5 million for job training programs.

With more than 80 years of experience serving Southeast Michigan and some of the region's largest commercial businesses, JPMorgan Chase's unprecedented commitment includes:


Investing in Detroit's Community Development: JPMorgan Chase is putting its community development banking expertise to work for Detroit by providing $40 million in flexible, long-term debt capital and $10 million in grant capital to two leading non-profit community development lenders, Invest Detroit and Capital Impact Partners. This commitment will finance critical projects to help turn around struggling neighborhoods and grow small businesses. Financing will provide and leverage capital for residential, commercial and retail development projects that often lack access to conventional financing, spurring others to invest.

Tackling Blight: Confronting blight is a critical lynchpin in Detroit's revitalization. Working with the Detroit Land Bank Authority and the Blight Task Force, JPMorgan Chase is committing $25 million to help accelerate the city's ambitious efforts to end residential blight, restore properties to productive use, and stabilize and revitalize neighborhoods. This commitment will also fully fund the second phase of the Motor City Mapping project, which has been credited with helping city leaders document blighted parcels, and will develop a critical tool to ensure residents have a voice in their neighborhood's future.  Finally, the Firm will seed a Rehab Loan Pilot Program for families to rehabilitate homes they purchase through the city's Neighbors Wanted property auction.

Strengthening Workforce Readiness: JPMorgan Chase is committing $12.5 million to better link the city's workforce development efforts with employer needs and give Detroit residents access to training in the skills employers are seeking. Working with partners such as the Detroit Employment Solutions Corporation and the Workforce Innovation Network, this commitment will identify growing economic sectors and create collaborative programs to train workers and develop career pathways.  

Growing Small Businesses: JPMorgan Chase is committing $7 million to support Detroit's small business clusters, including Bizdom and Eastern Market. These clusters are connecting small businesses and entrepreneurs to the resources and expertise they need to get their companies off the ground, catalyzing broader growth and employment - both downtown and within the neighborhoods.

Seeding Future Economic Growth: JPMorgan Chase is committing $5.5 million in strategic initiatives that are important to Detroit's future economic growth by investing in the new M-1 rail line and bringing the Global Cities Initiative, a Joint Project of Brookings and JPMorgan Chase, to Detroit.  The commitment will also support other local organizations working to revitalize the city.

"I want to thank and applaud JPMorgan Chase & Co. for their generous investment and long-term commitment to the reinvention of Detroit," said Michigan Governor Rick Snyder.  "This multi-year initiative is coming at an excellent time to not only build upon, but help accelerate the positive momentum happening in areas like workforce skills training, community development, growing small businesses and blight removal.  With JPMorgan Chase's strong ties to Detroit,  I am so grateful for their willingness to give back to the community with a smart, sensible investment that helps further ensure that Detroit is on a sustainable path to recovery."

"This commitment from JP Morgan Chase represents a real vote of confidence in the work we are doing in Detroit right now," said Detroit Mayor Mike Duggan. "It is also a significant investment in the strategies we are implementing to address blight in our neighborhoods, build our workforce and support small business and non-profits. I am grateful to Jamie Dimon and his team for stepping up to be a true partner in Detroit's turnaround."

"JPMorgan Chase's  impressive commitment to Detroit is more evidence that national and even global institutions are becoming confident in the story and opportunity that is 'Detroit,'" said Dan Gilbert, Chairman and Founder, Rock Ventures LLC & Quicken Loans Inc. "I am hopeful that JPMorgan Chase's support will not only strengthen important community and business efforts already underway in Detroit, but inspire additional local and national players to engage in the rebuilding of our great American city."

JPMorgan Chase's commitment builds upon the promise and progress of recent efforts by other businesses and foundations that have been working together to drive Detroit's economic recovery. The Firm intends to measure outcomes and share best practices from Detroit that can be valuable tools for other cities as they work to strengthen their own prospects for economic growth.

Finally, JPMorgan Chase is applying the experience and skills of its employees to help Detroit's nonprofits strengthen their capacity to solve the community's toughest problems. Through the JPMorgan Chase Detroit Service Corps, dedicated teams of volunteers will put their business expertise to work, providing capacity building and technical assistance to help local nonprofits find solutions to challenges they have identified.

"Investing in Detroit isn't just the right thing to do, it's the smart thing to do for Detroit and other cities that can learn from their experiences," said Peter Scher, Executive Vice President and Head of Corporate Responsibility at JPMorgan Chase. "Detroit's recovery will create tremendous opportunities for consumers and businesses, and it is going to provide lessons for the economic health and future of other American cities and cities around the world." 
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Online:
 
http://www.jpmorganchase.com

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