JPMorgan Chase is starting a $500 million project meant to boost economic growth in up to 30 cities throughout the country.
The initiative is called “AdvancingCities,” and cities will compete against each other to receive the funding, according to the Wall Street Journal. The idea is tackle issues that traditional financing has had trouble reaching, JPMorgan CEO Jamie Dimon said. The program will focus on affordable housing, filling empty commercial buildings and helping small businesses negotiate leases and hire employees.
The bank plans on using public-private partnerships to invest in places where it can tackle issues like financial insecurity and employment barriers. JPMorgan is looking to invest in cities with a large amount of government entities and nonprofits.
Charitable investments will comprise half of the initiative, and the other $250 million will consist of loans for sustainable projects. The bank plans to tap an extra $1 billion for the project in outside capital.
Dimon told the Journal that this project is “very targeted in aiding economic development.”
The request for proposals will launch on Wednesday and close at the end of November. The bank will announce winners in the spring.
JPMorgan has been funding affordable housing in U.S. cities. From 2014 to 2019, the bank will have invested $150 million in Detroit, according to the Journal. It’s already invested $40 million in Chicago and $20 million in the Washington D.C. area. [WSJ] – Eddie Small