The city of Detroit just got a boost that will have an enduring impact. JPMorgan Chase & Co. has announced a $100 million, five-year commitment to bolster the economic recovery of the city, which, in 2013, became the largest city in U.S. history to file for bankruptcy.
The funds will be distributed to local organizations that are helping to rectify the impact of the city’s economic issues on communities. It’s an investment that will address five designated areas and issues, one of which is community development, where the bulk of the money will be allotted.
JPMorgan Chase will give $40 million in flexible, long-term debt capital and an additional $10 million in grant capital to Invest Detroit and Capital Impact Partners, two non-profit community development organizations. The two entities will be able to supply capital and leverage for both commercial and residential development projects.
An additional $25 million of the JPMorgan contribution will be put in the hands of the Detroit Land Bank Authority and the Blight Task Force to tackle the issue of blight through three avenues. A portion of those funds will be utilized to assist the City as it moves toward attaining its long-held goal of eradicating blight. Another portion will be used to fund the second phase of the Motor City Mapping project, a tech-driven program that is meticulously identifying abandoned structures and vacant parcels across Detroit. And the remainder of the $25 million will kick-start a Rehab Loan Pilot Program that will help homeowners rehabilitate homes bought through the city’s Neighbors Wanted property auction.
The remaining $25 million of JPMorgan Chase’s commitment will be directed toward strengthening workforce readiness, growing small businesses and seeding future economic growth through strategic initiatives.
“We believe in Detroit’s future, and we want to see the city recover its economic strength,” Jamie Dimon, chairman & CEO of JPMorgan Chase, said in a prepared statement. “With this investment, we are putting our resources and expertise to work to help Detroit chart a course back to economic prosperity.
The investment marks JPMorgan Chase’s largest financial contribution to a city.
By Barbra Murray, Contributing Editor http://www.cpexecutive.com