In Detroit, Michigan, Invest Detroit is a mission-driven lender, investor, and partner that supports business and real estate projects that it hopes will ignite economic growth in the city. Invest Detroit’s goal is to increase urban density and boost job opportunities in a way that’s both strategic and inclusive.
Now, on February 21, 2019, JPMorgan Chase has committed $15 million to support Detroit’s neighborhoods to help more Detroit residents benefit from the city’s continued economic recovery.
As part of JPMorgan Chase’s $150 million, five-year commitment to Detroit, this new investment, which combines a $10 million, long-term, low-cost loan and $5 million in philanthropy, is expected to expand economic opportunity in these neighborhoods.
These commitments will enable the Strategic Neighborhood Fund to finance critical neighborhood projects that lack access to traditional financing, help attract additional capital, and over time provide local residents with more access to affordable housing and goods and services where they live and work.
The announcement was made today at the Detroit School of Digital Technology in Southwest Detroit with senior JPMorgan Chase, community and government leaders.
“With the help of partners like JPMorgan Chase, we are taking the successful strategies that worked in our Downtown and Midtown areas and scaling it to bring physical improvements and development to neighborhoods across our city,” said Detroit Mayor Mike Duggan. “We’ve got a lot more work to do and together, we’ll expand the good work being done to ensure more Detroiters are participating in the comeback.”
This new commitment is primarily targeted towards projects in commercial corridors across ten neighborhoods. These neighborhoods were selected because they are crucial to extending Detroit’s economic recovery to more residents, support local small businesses, and provide quality jobs.
“There are so many clear signs of recovery across Detroit. The leadership of the Mayor and the strategic focus of so many partners has truly been the key to this progress,” said Peter Scher, Head of Corporate Responsibility, JPMorgan Chase. “We want this growth to benefit all Detroiters, especially those who have lived here their whole lives. That’s why we continue to invest our long-term capital in more neighborhoods.”
JPMorgan Chase is combining its business and philanthropic expertise to address some of Detroit’s biggest economic challenges. In 2014, JPMorgan Chase helped launch two community development loan funds in Detroit — the Detroit Neighborhoods Fund and Chase Invest Detroit Fund through two Community Development Financial Institutions (CDFIs): Capital Impact Partners and Invest Detroit.
These funds, which included $40 million in low-cost debt from JPMorgan Chase, helped finance the construction of mixed-use real estate development, affordable multi-family housing and high quality residential, commercial and retail developments, as well as provided flexible capital for small and medium-sized businesses throughout Detroit.
In total, these funds have leveraged over $230 million in additional funding from outside sources to support residential and commercial development. The loans helped create 828 residential housing units, 296,000 square feet of commercial space and created or saved 538 jobs.
Also since 2014, JPMorgan Chase’s Community Development Bank Group contributed nearly $150 million in New Markets and Historic Tax Credit transactions and construction loans to affordable housing projects throughout Detroit for the development of 747 units of affordable housing, as well as grocery stores, schools and commercial space.
Looking ahead, the firm’s new $15 million commitment supports a market-based approach to creating sustainable loan programs for residential and commercial development, small business access to capital and home rehabilitation.
In addition to offering capital and philanthropic support, the firm has contributed the skills and expertise of its employees to build the capacity of its nonprofit partners. In 2017, four employees from JPMorgan Chase’s Service Corps were embedded with Invest Detroit to assist with developing Strategic Neighborhood Fund metrics as well as a framework for prioritizing neighborhoods for successful future development.
“JPMorgan Chase’s original investment of resources and expertise transformed our capacity so that we could start to bring revitalization tools into the neighborhoods,” said David Blaszkiewicz, President and CEO, Invest Detroit.
“This additional investment allows us to greatly expand this tested and measurable approach that JPMorgan Chase was so instrumental in creating,” he concluded.
Photo of Detroit via Adobe Stock.