Creating Economic Opportunities for All: The Role of JPMorganChase’s Impact Finance & Advisory Team

In a world where economic disparities continue to challenge communities, the need for innovative financial solutions has never been more pressing. At JPMorganChase, we believe everyone deserves the opportunity to thrive. Our Impact Finance and Advisory (IFA) team aims to be at the forefront of this mission, investing capital that helps empower communities and create economic opportunities for all.

Since our inception in 2018, we’ve been providing non-grant financing options, such as debt and equity investments, to complement JPMorganChase's grantmaking and community engagement efforts. Our flexible investment tools can advance economic impact in ways beyond the reach of traditional philanthropy. We believe that by deploying capital in innovative and intentional ways, we can help communities address chronic challenges such as housing affordability, access to capital for consumers and small businesses, and preparing workers for a rapidly changing labor market.

Through three financing solutions, we help to ensure financial resources are directed toward initiatives that foster economic growth and stability:

First, we provide loans to financial intermediaries and funds through our credit solutions arm. These long-term, low-cost loans enable our partners to fund innovative products and scale impactful initiatives while securing additional public and private financing, expanding their capacity to lend to borrowers. A prime example of our impact is our work with Chicago Community Loan Fund (CCLF), which provides financing and technical assistance for community stabilization and development initiatives that benefit low and moderate-income neighborhoods, families, and individuals throughout metropolitan Chicago. Many developers in these areas face high borrowing costs and lack access to equity financing, leading to disinvestment in underserved communities. To address this, IFA's loan provides a source of concessionary capital, lowering the blended cost of capital for developers and enabling impactful community development projects to succeed and stimulate local economic growth.

We also invest equity in funds managed by impact-focused fund managers. We provide Limited Partner capital to funds focused on affordable housing preservation and new construction as well as Small Business Investment Company (SBIC) funds that help deliver critical debt and equity capital to undercapitalized entrepreneurs. For example, Catalyst is a double-bottom-line real estate investment platform focused on investments in historically underserved U.S. markets. We participated in a $140 million fund capital raise that will help Catalyst directly address the nationwide shortage of affordable housing through the construction of new workforce and affordable housing units.

Our commitment to creating economic opportunities for all also extends to engaging directly with early and growth-stage companies. Through venture investments we support firms pioneering new technologies that aim to improve economic outcomes for consumers, workers, and students. Our investment in FairPlay, an organization that helps companies assist banks and lenders in evaluating potential sources of bias across their operations, is an important example of our work in this space. We participated in a $10 million investment to accelerate FairPlay’s ability to help its customers evaluate their models, broaden credit access, and strengthen the financial services ecosystem so that institutions of all sizes can adopt responsible AI practices.

By leveraging our unique capabilities and expertise, we complement JPMorganChase's philanthropic efforts, by bridging the gap between philanthropy and traditional capital markets. Our strategic partnerships and innovative financial solutions help to ensure that financial resources are directed towards impactful, scalable initiatives that drive lasting economic growth. To learn more, visit https://www.jpmorganchase.com/impact/impact-finance.