JPMorgan Chase today announced initiatives to further support Minority Depository Institutions (MDIs) and diverse-led Community Development Financial Institutions (CDFIs), as part of the firm’s recently announced $30 billion commitment to advancing racial equity.
MDIs and CDFIs provide vital financial services in communities that are often underserved. In order to provide this necessary funding to underrepresented communities, many MDIs and CDFIs need additional capital themselves.
These new initiatives are focused on strengthening minority-owned and diverse-led financial institutions by providing additional access to capital, connections to institutional investors, specialty support for Black-led commercial projects and mentorship and training opportunities.
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To support MDIs and CDFIs, today the firm is announcing:
1.  A New Money Market Share Class for Distribution by MDIs and Diverse-Led CDFIs
JPMorgan Chase has launched Empowering Change, a unique program supported by Google and in partnership with MDIs and diverse-led CDFIs to provide economic opportunity to underserved communities. The program is designed to allow MDIs and CDFIs to offer new investment products to their customers, boost their technological capabilities and develop new revenues through fund distribution.
Google is anchoring the program’s launch with an intent to invest $500 million in the Empower money market share class that will be initially distributed by diverse-led MDIs The Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank. This initiative builds on Google’s partnership with Opportunity Finance Network to support CDFIs, and multiple racial equity commitments made in 2020.
The Empowering Change program includes:
1. A new Empower money market share class for distribution by MDIs and diverse-led CDFIs, offered across J.P. Morgan Asset Management’s suite of money market funds,1Â allowing institutional clients to support MDIs and diverse-led CDFIs and create a positive social impact
2. An annual donation of 12.5% of revenue received from the management fees on Empower share class assets to support community development
3. Access to the depth and breadth of J.P. Morgan Asset Management’s resources, including the Morgan Money digital investment platform, sales and marketing and client service support
4. Training, education and marketing resources for partner firms led by JPMorgan Chase
The annual donation will be made for the life of the Empower share class to the Empower and Community Development Fund, a Donor-Advised Fund administered by the Chicago Community Trust that is committed to supporting community development to expand opportunities within underserved communities.
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2.  $40 Million in Direct Equity Investments and Commitments to Leading MDIs
The firm has invested and committed the first $40 million of the $50 million equity pledge to Black and Latinx-led MDIs. The initial round of investments support minority-owned and Black-led MDIs including the holding companies for Louisiana-based Liberty Bank and Trust, North Carolina-based M&F Bank, New York-based Carver Federal Savings Bank and Los Angeles-based Broadway Federal Bank.
By mid-year, JPMorgan Chase is expecting to increase its investments in MDIs to also include Latinx-led institutions. In total, the investments and commitments could generate access to as much as $500 million in community lending across the nation. The capital will help MDIs create wealth in communities, grow local businesses and could be used to:
1. Supply more loans to consumers and businesses
2. Expand operations and open branches to serve more communities
3. Invest in new technology and digital capabilities to modernize platforms, drive efficiencies and deliver a better customer experience
In addition to the equity investments, these MDIs will also become J.P. Morgan clients and gain access to the firm’s expertise, solutions and network.
This announcement builds on the firm’s close relationships with Liberty Bank and Trust and The Harbor Bank of Maryland through the U.S. Department of the Treasury’s Bank Mentor Protégé Program, an important part of a broader strategy to promote inclusion across financial institutions and extend access to banking services to all communities.
     3.  A Racial Equity Program to Support Vital Businesses and Nonprofits
Working with MDIs and diverse-led CDFIs, JPMorgan Chase is providing premium New Markets Tax Credit (NMTC) investment pricing for Black-owned, Black-led and Black-serving nonprofits and businesses and helping to direct NMTC financing to meaningful community projects, including grocery stores, shelters, healthcare clinics and small businesses. This Racial Equity program is part of the additional $100 million in NMTC financing annually dedicated to diverse organizations, as part of the firm’s $30 billion commitment to advancing racial equity.
The first $20 million investment, made in partnership with The Harbor Bank of Maryland, City First Bank and Partners for the Common Good, will provide critical funds to Community of Hope for the purchase, renovation and expansion of the Family Health and Birth Center. The facility—which will annually provide more than 5,800 patients with medical, dental and behavioral health services—is the only medical establishment with a labor and delivery unit serving the Northeast and Southeast quadrants of D.C. and helps nearly 400 women per year with prenatal care.
JPMorgan Chase is providing more than $300 million in additional financing to CDFIs over the next five years. The firm originated over $285 million of lending to CDFIs and their affiliates in 2020 and has also supported the development of food banks and shelters, healthcare centers, grocery stores and schools across the nation through the NMTC program. Six of these projects, totaling more than $60 million in financing, have specifically supported low-income communities as part of the NMTC Racial Equity Program.
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