JPMorgan Chase Announces More than $2 Million to Support Underserved Small Businesses in Detroit
New philanthropic commitments to six organizations serving Detroit will help support growth and development of underserved small businesses across the city
June 5, 2023 (Detroit) – On Monday, JPMorgan Chase announced a new $2 million commitment of philanthropic capital to nonprofit organizations dedicated to advancing support for underserved small businesses in Detroit. This support expands upon the firm’s long standing commitment to business growth and revitalization in Detroit and reflects both new and renewed commitments to six nonprofit organizations serving underserved small businesses in the city.
The commitments include:
- $750,000 commitment to Detroit Development Fund (DDF). This grant continues the firm’s support of DDF’s Entrepreneurs of Color Fund, a program launched seven years ago to support the growth and development of Detroit-based businesses owned and operated by underserved entrepreneurs.
- $400,000 commitment to TechTown Detroit. This commitment will support and help expand TechTown Detroit’s four small business technical assistance programs. Such assistance will include one-on-one business coaching, Business Boot Camps, strategy sessions, and alumni engagement.
- $400,000 commitment to Accounting Aid Society (AAS). This grant provides support to AAS’s program that assists underserved entrepreneurs across Detroit, Wayne County, and Oakland County in developing stronger financial acumen through tax services and small business technical assistance.
- $400,000 commitment to The Working World. This commitment will support education and training for Detroit-based business support organizations, succession planning assistance for retiring or exiting business owners, and will facilitate financing for ownership conversions in industries such as child care.
- $300,000 commitment to Black Leaders Detroit (BLD). This grant provides capacity support to BLD to help scale its program that provides no-interest and recovery-focused loans for diverse social and community driven projects that are owned and led by minority entrepreneurs. The loans may be used for funding working capital, equipment purchases or rentals and to support a growth or expansion plan.
- $200,000 commitment to Metro Detroit Black Business Alliance (MDBBA). The commitment will support MDBBA’s program that provides resources and technical assistance to small minority-owned businesses in Detroit to grow and scale their enterprises. Through a culturally relevant framework, MDBBA will offer financial technical assistance, back-office support, and coaching on building and navigating relationships with lenders and funders.
"We are very thankful for the funding and partnership provided by JPMorgan Chase,” said Deborah L Jones, Chief Operating Officer of the Detroit Development Fund. “Together we are committed to making a tremendous impact in underserved communities and in the lives of families throughout the city of Detroit."
Supporting Local Small Businesses
This support is part of the firm’s efforts to advance racial equity and bring more economic opportunities to diverse and underserved communities.
At its Corktown Community Center branch, the firm continues to offer small business owners free mentorship, advice, and education. The Corktown Community Center branch opened in 2021; it is one of 16 Chase Community Centers to open nationally. To date, JPMorgan Chase has mentored 129 minority small business owners in Detroit through its free one-on-one coaching program.
JPMorgan Chase also plans to hire more than 500 small business bankers over the next two years to provide more support to small business owners across the country, including in Detroit, where Chase expects to increase its business banking team by more than 20%.
“New business formation in Detroit is up more than 60% from pre-pandemic levels,” said Jason Tinsley, Vice Chair for J.P. Morgan's Michigan Private Bank. “As small businesses continue to start, scale, and grow, we’re committed to expanding access to financial capital, customer sourcing, and a reliable network of support for small business owners regardless of background or zip code.”
Detroit was also one of four markets to pilot a Special Purpose Credit Program aimed at improving access to credit for small business owners in historically underserved areas. Based on the success of the pilot, the program launched nationally in November 2022, and is one of many initiatives Chase has introduced to expand small business relationships, drive inclusive economic growth, and increase access to credit for small business owners in underserved areas.
A Longstanding Commitment to Detroit
By 2022, JPMorgan Chase committed more than $200 million to help support Detroit’s economic recovery since the city filed for bankruptcy in 2013.
“Detroit’s resurgence is a testament to what can be accomplished when government, business, and community leaders work together to create economic opportunity,” said Peter Scher, Vice Chairman for JPMorgan Chase. “The city continues to serve as a model for how we seek to drive long-term growth in the communities we serve in the United States and around the world.”
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $303 billion in stockholders’ equity as of March 31, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.