JPMorgan Chase (JPM) is committing $33 million to encourage community development financial institutions to work together to stimulate economic growth in underserved markets.
Through its foundation, the bank said Wednesday that it is awarding grants of between $2 million and $7 million to seven community development collaboratives operating in 21 states. Each collaborative, made up of multiple community development financial institutions, plans to use its grant to create economic opportunities for residents and small businesses in distressed neighborhoods.
A Chicago-area collaborative, made up of Community Investment Corp., Chicago Community Loan Fund and Neighborhood Housing Services of Chicago, will use the grant to redevelop housing in the city.
Another collaborative used the grant to start ReFresh, a project that aims to improve access to healthy food options in Florida, Ohio, Colorado and California's Northern and Central Valley regions.
Other collaboratives will put the grants toward offering low-income Latino communities access to small business loans and affordable mortgages; providing health care, child care, job training and education facilities; and helping families who live in mobile homes build financial security.
"Through our community development banking business, we see first-hand the impact our CDFI partners have on the communities in which they invest," Priscilla Almodovar, the head of community development banking at JPMorgan Chase, said in a news release. "This new collaboratives program continues the firm's commitment to CDFIs and will significantly bolster the impact of their work, improving the lives of even more residents in low- and moderate-income communities."