TIDMJPM
VEDC and JPMorgan Chase & Co. today announced a new lending
program for African American-owned small businesses in New York
City, Chicago and Los Angeles. The National African American Small
Business Loan Fund will boost economic opportunity for
minority-owned businesses in these cities and help them serve
low-income communities by providing them with greater access to
capital, technical assistance and financial consulting. JPMorgan
Chase Foundation has contributed a $3 million grant to help VEDC
reach its goal of creating a $30 million loan fund.
Facilitated by VEDC, a California 501(c)3 Community Development
Financial Institution (CDFI), this new Fund will provide financing
for businesses across all industries. By providing the initial $3
million grant to seed the Fund, JPMorgan Chase is helping VEDC
support small businesses that are a critical source of jobs and
economic opportunity in their neighborhoods, but may be
credit-impaired and unable to qualify for traditional capital.
Without access to sustainable financing, these businesses may miss
a growth opportunity or risk closing their operations.
"As a direct small business lender and a leading intermediary of
SBA loan programs, VEDC has a 39-year track record of providing
business services to small businesses in low-and middle-income
communities and especially in communities of color," said Robert
Barragan, President and CEO, VEDC. "Approximately 20 percent of our
existing portfolio serves the African American community. With
JPMorgan Chase's seed funding, we look forward to helping more
small businesses in our effort to further narrow the lending
gap."
Currently, there are 268,000 African American-owned small
businesses in New York, Chicago and Los Angeles - making them among
the top cities for African American-owned small businesses. With
ownership of approximately 1.9 million, 7 percent of small
businesses nationwide, African Americans are the fastest growing
segment of small business owners.1 However, business loans to
African American entrepreneurs have yet to rebound since the
economic downturn in 2008.
To address this need, the National African American Small
Business Loan Fund will provide short and long-term loans. Loan
sizes will vary, but the average loan will range from $35,000 to
$250,000. The JPMorgan Chase grant will allow the National African
American Small Business Loan Fund to provide loans and technical
assistance and establish a loan loss reserve. This reserve will
allow VEDC to expand its lending criteria to New York, Chicago and
Los Angeles small businesses that traditionally did not qualify for
a loan.
"African American small business owners have identified flexible
capital as a critical resource for growth, but they face a shortage
of this kind of support," said Janis Bowdler, Head of Community
Development for Global Philanthropy, JPMorgan Chase. "CDFIs like
VEDC provide small businesses with the consulting and financing
they need to grow their operations and often serve as a bridge to
traditional bank loans down the road. We're proud to partner with
VEDC on this new fund, which will increase access to the capital
and assistance that African American entrepreneurs need most."
Businesses receiving financing will be able to use the capital
to expand, finance equipment, address short-term cash flow needs
and provide contractor lines of credit. The Fund will also provide
small business loan recipients with technical assistance such as
networking, marketing, business plan development and financial
consulting. Eligible small businesses must be majority-owned by
African Americans.
Notable Statements of Support
"This new lending program will be another critical piece in our
ongoing efforts to promote small business development and
entrepreneurship in all Chicago communities, and particularly those
that have traditionally lacked access to capital," said Chicago
Mayor Rahm Emanuel. "By investing in Chicago's minority-owned
businesses, VEDC and JPMorgan Chase are showing the power of the
private sector to help cities tackle some of our biggest
challenges."
"African American-owned small businesses are vital economic
engines in Los Angeles, and when they are empowered, our
communities have new doors open to them - opportunities that they
both need and deserve," said Los Angeles Mayor Eric Garcetti. "We
expect great things from this fund, and thank VEDC and JPMorgan
Chase for their commitment to addressing this great need."
"These small businesses are the heart of our neighborhoods,"
said New York City Mayor Bill de Blasio. "They put people to work
and create opportunity for families to make their way up the
economic ladder. We are excited to partner with JPMorgan Chase and
our fellow cities to support and grow African-American small
businesses."
"We know that mission lenders hold the key in providing a
sustainable source of capital to minority borrowers and those that
have been left out of the economic mainstream," said Grady
Hedgespeth, Director of U.S. Small Business Administration Office
of Economic Opportunity.
This new fund complements the recently launched Detroit Minority
Business Loan Fund - a $6.5 million loan fund for Detroit's
minority-owned small businesses - announced last month by Detroit
Development Fund, JPMorgan Chase and W.K. Kellogg Foundation.
Detroit is the fourth largest U.S. city for the number of
minority-owned businesses.
Interested small businesses in New York, Chicago or Los Angeles
can learn more about eligibility by contacting VEDC at (212)
231-4310.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE:JPM) is a leading global
financial services firm with assets of $2.4 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government
clients under its J.P. Morgan and Chase brands. The firm uses its
global resources, expertise, insights and scale to address some of
the most urgent challenges facing communities around the world
including the need for increased economic opportunity. Information
about JPMorgan Chase & Co. is available at
www.jpmorganchase.com.
About VEDC
VEDC is a leading non-profit small business lender that is
changing the way small business lending is done by making it more
available and impactful. With a growing footprint, VEDC has lent
$380 million in direct and guaranteed loans to over 104,000 small
businesses and created more than 28,000 new jobs. VEDC's mission,
as a certified Community Development Financial Institution (CDFI),
is to help create jobs and promote small business development in
under-served communities. It provides loans and micro-financing
options to small businesses, particularly those owned by women and
minorities, that don't qualify for traditional financing. VEDC's
expanding portfolio is composed of community-based loan funds in
California, Illinois, Nevada, Utah, New Jersey, Connecticut,
Florida and New York. For more information, visit www.vedc.org.
1http://www.census.gov/newsroom/releases/archives/business_ownership/cb11-24.html
Media:JPMorgan Chase:Nicole Kennedy,
215-864-5732nicole.kennedy@chase.comorVEDC:Lisa Winkle,
818-907-9977lwinkle@vedc.org
View source version on businesswire.com:
http://www.businesswire.com/news/home/20151023005470/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
October 23, 2015 09:16 ET (13:16 GMT)
JP Morgan (LSE:JPM)
Historical Stock Chart
From Apr 2024 to May 2024
JP Morgan (LSE:JPM)
Historical Stock Chart
From May 2023 to May 2024