Three big banks on Wednesday announced new community investment initiatives.
JPMorgan Chase (JPM) will provide $100 million in financing to help with economic recovery efforts in Detroit. The initiative includes approximately $50 million in debt capital and grants to nonprofit groups that provide loans to homeowners and small businesses. It also includes $25 million to rehabilitate blighted neighborhoods, as well as funding for job training programs and the M-1 streetcar line in downtown Detroit.
JPMorgan Chairman and CEO Jamie Dimon was scheduled to introduce the initiative Wednesday at a lunch with community and government leaders at The Garden Theater in Detroit.
"With this investment, we are putting our resources and expertise to work to help Detroit chart a course back to economic prosperity," Dimon said in prepared remarks. "We have been in Detroit for a very long time, and we're here for the long term."
Capital One Bank announced $100 million in financing for a solar energy initiative. The bank, a unit of Capital One Financial (COF), will partner with SolarCity, based in San Mateo, Calif., to create an investment fund for the installation of residential solar power systems. The program will offer homeowners free solar panel installation, as well as lower utility costs. SolarCity currently serves 14 states, including New York, New Jersey and Texas. It also serves Washington, D.C.
This is Capital One's first foray into renewable energy. The program reflects its "commitment to growing and expanding its energy business into new sectors," Capital One said in a press release.
Meanwhile, Citigroup (NYSE: C) announced that it will expand its community investment portfolio. The bank will provide $77 million to Advantage Capital Partners, which provides capital to underserved communities, to provide financing for loans to small and startup businesses in low-income communities.
Funding for Citi's program will be provided in conjunction with the New Markets Tax Credit program, which provides corporations with an income tax credit for making equity investments in community development organizations.