JPMorgan to Support CDFI Collaboration

Cities need you. Support Next City and have your gift matched.Donate

JPMorgan to Support CDFI Collaboration

New $125 million initiative aimed at disadvantaged neighborhoods.

Janis Bowdler, head of community development for global philanthropy at JPMorgan Chase, announces PRO Neighborhoods. (Kevin Wolf/AP Images for JP Morgan Chase & Co.)

Loans remain difficult to acquire for many people in working-class and lower-income neighborhoods in the U.S. Even community development financial institutions (CDFIs) with the mission to provide affordable, responsible lending to disadvantaged communities can struggle to provide large-scale credit because of low balance sheets or lack of operating capital. However, as Next City Equitable Cities Fellow Oscar Perry Abello reported in “Groundbreaking CDFI Deal Will Make a Difference in Chicago” last October, CDFIs can increase their impact by collaborating, and leveraging their resources to create greater outcomes.

Today JPMorgan Chase announced a five-year, $125 million initiative to create economic opportunity in struggling neighborhoods by boosting community development organizations, in part by fostering collaboration among regional CDFIs.

PRO Neighborhoods will focus on three areas: It will supply CDFIs with capital that encourages them to pool their resources and expand their lending activities, which support the creation of health centers, education facilities and other supportive services. The initiative will also provide seed capital to local organizations to acquire, refurbish and create affordable housing in neighborhoods at risk of gentrification. And it will dedicate funding to research on cities’ demographic shifts, with the goal of helping community development organizations to make more data-driven decisions about resource allocation.

The initiative builds upon a $33 million 2014 pilot program also focused on disadvantaged neighborhoods. According to an impact assessment by the Harvard Joint Center on Housing Studies, that pilot allowed 26 CDFIs to raise more than $226 million, seven times JPMorgan’s initial grant. Because of this, the CDFIs were able to make $100 million in loans, finance the preservation and development of over 2,000 units of affordable housing, and lend to over 130 small businesses.

Jen Kinney is a freelance writer and documentary photographer. Her work has also appeared in Philadelphia Magazine, High Country News online, and the Anchorage Press. She is currently a student of radio production at the Salt Institute of Documentary Studies. See her work at jakinney.com.

Follow Jen .(JavaScript must be enabled to view this email address)

Tags: affordable housingincome inequalitybig datacdfi fund

×
Next City App Never Miss A StoryDownload our app ×
×

You've reached your monthly limit of three free stories.

This is not a paywall. Become a free or sustaining member to continue reading.

  • Read unlimited stories each month
  • Our email newsletter
  • Webinars and ebooks in one click
  • Our Solutions of the Year magazine
  • Support solutions journalism and preserve access to all readers who work to liberate cities

Join 837 other sustainers such as:

  • Anonymous in Shreveport, LA at $5/Month
  • Karis in Rocky River, OH at $100/Year
  • Jolene in Chicago, IL at $75/Year

Already a member? Log in here. U.S. donations are tax-deductible minus the value of thank-you gifts. Questions? Learn more about our membership options.

or pay by credit card:

All members are automatically signed-up to our email newsletter. You can unsubscribe with one-click at any time.

  • Donate $20 or $5/Month

    The 21 Best Solutions of 2021 special edition magazine

  • Donate $40 or $10/Month

    Brave New Home by Diana Lind