JPMorgan Chase Commits $30 Billion to Advance Racial Equity

JP Morgan Chase

JPMorgan Chase recently made a $30 billion pledge to address racial inequality over the next five years, which will be implemented in both the company’s external dealings and internal policies. The move comes amid a national movement toward more racially equitable policies coming from the private sector, which have been championed by Robert F. Smith.

“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, CEO of JPMorgan Chase. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”

As part of the pledge, the company will help Black and Latinx Americans refinance loans to secure lower mortgage payments, while also committing to new loans and equity investments to help finance 100,000 affordable rental units in underserved communities. The bank will also launch a new coaching program for underrepresented entrepreneurs, recruit diverse suppliers, and prove thousands of loans to small businesses in predominantly Black and Latinx communities.

Smith posted on his Instagram, “Shout out to Jamie Dimon and his team @JPMorgan for their historic $30 billion commitment to close America’s racial wealth gap. We will pave the road to a stronger America one brick at a time, and JP Morgan just added a whole lot of bricks.”

Smith argued previously that increasing the number of financial institutions — the capillary banking network — and their involvement in capitalizing marginalized communities will help close historical gaps and remove barriers to success. He also called for greater corporate involvement in solving racial inequity, saying companies should dedicate 2% of their annual net income for the next decade to empower marginalized communities.

Read more about JPMorgan’s commitment to advance racial equity here.