JPMorgan Chase & Co. has a new year’s gift for black entrepreneurs in Chicago. Particularly those who have ventured into the real estate industry. This move by the bank has been well received as it will help more black entrepreneurs venture into affordable spaces within the underserved neighborhoods of the South sides and Chicago’s West.
The JPMorgan bank has pledged to invest $10 million, money that will be channeled to the end borrower through the Chicago Community Loan Fund (CCLF); a non-profit lender that serves commercial real estate development by enabling small businesses get a loan to finance their ventures.
To CCLF, the loan from JPMorgan is a low-cost long-term loan that will enable it to give out loans to black entrepreneurs looking to venture into real estate projects in the South and West sides. These are regions traditionally avoided by money lending institutions because they are deemed as too risky. CCLF will now have a sustainable stream of money for its loan programs.
The move by the bank, the biggest bank in the US, will without a doubt help small entrepreneurs and residents within Chicago continue to live and do business in the region. The project is also expected to spur up the creation of new jobs and rope in more people into economic development.
PS – The bank is also involved in a three-year philanthropic project that will see it pump $40 million to the economic empowerment of predominantly black and ethnic minority areas of Chicago. JPMorgan has a $500 million Advancing Cities initiative, $250 million of which will be directed towards low-cost, long-term capital. This loan to Chicago is the first loan the city is getting as part of that JPMorgan’s initiative.