To help community development financial institutions improve capital access to small businesses and create affordable housing, JPMorgan Chase & Co. has developed a grant program to make it happen.
In addition, the New York-based bank said its CDFI Collaboratives program will award $33 million to CDFIs to also build healthy food networks and create economic growth in distressed and underserved communities.
The grants, available through the JPMorgan Chase Foundation, range from $2 million to $7 million.
Twenty-seven CDFIs have come together to form seven collaboratives that will work in 21 states across the U.S. organized around a common community development challenge, according to JPMorgan Chase.
Among the grant recipients is the Raza Development Fund, which along with the $33 million MariSol Federal Credit Union in Phoenix, Arizona Multibank Community Development Corp., and Neighborhood Economic Development Corp., have formed Adelante en Familia to provide capital for small businesses, mortgages and consumer products in Latino and underserved communities South Phoenix, Tempe and Mesa.
“Through our community development banking business, we see first-hand the impact our CDFI partners have on the communities in which they invest,” said Priscilla Almodovar, head of Community Development Banking, Chase.
Other collaboratives receiving grants is the Community Reinvestment Fund, along with the National Development Council, Coastal Enterprises, Inc. and Calvert Foundation to deploy a joint technology platform to streamline the loan application and underwriting process for small businesses in Detroit, Milwaukee, New York, Buffalo, Seattle, Denver and Chicago.
The collaborative will seek to provide $81 million in small business financing and engage over 10,000 retail investors for this effort, according to JPMorgan Chase.
The National Association for Latino Community Asset Builders has also joined with Affordable Homes of South Texas, Community Resources & Housing Development Corporation and Prestamos, a CDFI subsidiary of Chicanos Por La Causa, to help residents of predominantly low-income, Latino communities in Texas, Arizona, Nevada, Colorado and New Mexico, build assets through access to small business and affordable housing financing opportunities.
The CDFI Collaboratives grants will be deployed over three years to leverage additional capital sources, expand to new geographies or asset classes, and create a shared infrastructure to improve quality and enhance efficiency, JPMorgan said.
JPMorgan Chase and its foundation said they have partnered with CDFIs for more than 20 years and has provided more than $100 million in grants to them and more than $1 billion in loans, grants and investments to CDFIs and their affiliates.