The bankrupt city of Detroit received some good news today courtesy of financial titan JPMorgan Chase & Co. (NYSE:JPM). The banking and investment firm announced today, May 21st, that it would be investing $100 million into the city of Detroit. JPMorgan’s investment/donation will be spread out among a number of urban renewal-related programs, including low-income home rehab loans, job training for Detroit residents and blight removal.
Statement from JPMorgan CEO
“We believe in Detroit’s future, and we want to see the city recover its economic strength,” JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon said in a prepared statement earlier today.
“We are putting our resources and expertise to work to help this iconic American city chart the course back to economic prosperity. We have been in Detroit for a very long time – and we’re going to be here for the long term,” Dimon continued.
Details of the donation to Detroit city
Community Development — JPMorgan Chase & Co. (NYSE:JPM) has committed $50 to general community development. The $50 million investment will be made partnership with Invest Detroit and Capital Impact Partners to create two new funds to help finance important projects that have difficulty finding access to traditional sources of capital.
Tackling Blight — The bank has also committed $25 million towards tackling blight.
The idea is to enhance the city’s efforts to end urban blight, restore properties to productive use and stabilize and revitalize neighborhoods. Around $5 million of JPMorgan funds are earmarked for a Rehab Loan Pilot Program that will make loans to families purchasing their a home through Detroit’s Neighbors Wanted vacant property auction.
Improving Workforce Readiness — Another $12.5 million is earmarked for workforce training. This initiative is designed to strengthen partnerships between employers and local workforce programs, and make sure Detroit residents receive training in the skills employers are seeking. A significant chunk of the funds will also go toward broadening employment experiences for young people working with the Detroit Youth Employment Consortium.
Small Businesses Incubation — JPMorgan Chase & Co. (NYSE:JPM) has also committed $7 million toward fostering the growth of small businesses in Detroit. the bank is partnering with other businesses such as Bizdom, TechTown and Eastern Market to help small businesses and entrepreneurs get the resources and expertise they need to get their businesses established and create growth and employment throughout the city.
Seeding Future Economic Growth — last but not least, JPMorgan Chase & Co. (NYSE:JPM) has set aside $5.5 million to encourage future economic growth. The goal is to support strategic initiatives that are important to Detroit’s recovery and long-term future, including the new M-1 rail line and bringing the Global Cities Initiative to Detroit. These funds will also help other local organizations working to revitalize the city.