Capital Impact Partners Joins JPMorgan Chase to Expand Economic Opportunity for Entrepreneurs of Color in Washington, D.C.
The Entrepreneurs of Color Fund will provide capital and business training to underserved minority entrepreneurs in the Washington, D.C. region.
February 11, 2019 (Washington, D.C.) – Capital Impact Partners joined JPMorgan Chase today to announce the expansion of the Entrepreneurs of Color Fund in the Washington, D.C. area. The Fund will support local minority entrepreneurs through access to capital and technical assistance.
JPMorgan Chase is seeding the loan fund with a commitment of $3.65 million, alongside a $2 million commitment from Capital Impact Partners and a $1 million investment from the A. James & Alice B. Clark Foundation, for a total of $6.65 million. This effort builds on existing Entrepreneurs of Color Funds in Detroit, Chicago, San Francisco and the South Bronx.
“There is no lack of inspirational business ideas being developed by individuals of color throughout the Washington, D.C. region,” said Ellis Carr, president and CEO of Capital Impact Partners. “They just need a catalyst to see those ideas realized. That is why Capital Impact is proud to join with JPMorgan Chase, Wacif, and the Latino Economic Development Center to provide targeted financing and technical assistance to these entrepreneurs. I have no doubt that this effort will support innovation and economic development in our city.”
“Making the economy work for more people is not only a moral obligation – it is a business imperative,” said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. “We are expanding our existing commitment to help create economic opportunity for more black families, businesses, employees, and communities.”
Expanding Entrepreneurs of Color Fund to Greater Washington
The opportunity to drive economic growth by investing in black families and businesses is real. According to Global Policy Solutions, if people of color owned businesses at the same rates as white entrepreneurs, it would result in 9 million more jobs and $300 billion in worker income. According to the Association for Enterprise Opportunity, if black-owned businesses could reach employment parity with all firms, they would create nearly 600,000 new jobs and put black job seekers at full employment.
However, economic opportunity is out of reach for many black Americans, who lack access to resources that can help put them on a path to great careers, build wealth, grow a business, and participate in the benefits of a growing economy.
“Investing in minority-owned businesses is one of the most effective ways we can drive job growth and economic opportunity in the region,” said Peter Scher, Head of Corporate Responsibility and Chairman of the Mid-Atlantic Region for JPMorgan Chase. “The Greater Washington region is thriving, but opportunity is not shared equally. With the Entrepreneurs of Color Fund, we are bringing a proven model that expands access to capital across our region and will help ensure that more people have a chance to participate in our growing economy.”
The Entrepreneurs of Color Fund is part of Chase’s Advancing Black Pathways (ABP) initiative, building on the firm’s existing efforts to help black Americans achieve economic success.
The Fund will provide capital and other resources to local minority entrepreneurs in the region, from northern Virginia to Baltimore. The program will pair low-cost capital with business advisory services, including networking support and business coaching, to support diverse entrepreneurs and drive business growth.
- Preserving and growing minority-owned businesses in commercial corridors: With Capital Impact working as fund manager, the Latino Economic Development Center (LEDC) and the Washington Area Community Investment Fund (Wacif) will advance the Fund by:
- Providing capital to update and invest in the storefronts, inventory, and service delivery systems, as well as technical assistance for minority-owned small businesses along commercial corridors in Washington, D.C.’s Wards 7 and 8;
- Supporting the preservation of long-standing minority-owned small businesses in commercial corridors to mitigate the impact of large-scale infrastructure projects.
- Cultivating a new generation of minority housing developers: Replicating the success of the Equitable Development Initiative in Detroit, the Entrepreneurs of Color Fund will work with Capital Impact Partners to provide tailored low-cost capital to support minority housing developers in the region.
- Streamlining anchor institution procurement: Similar to the San Francisco Entrepreneurs of Color Fund, which taps into supplier diversity pipelines to the Chase Center, the fund will work with the Wacif and the Coalition for Nonprofit Housing and Economic Development to offer the capital and advice needed for more local minority-owned businesses to scale and secure contracts from Washington-region anchor institutions, which have committed to purchasing more than $2 billion in supplies and services from diverse businesses in the region.
Additionally, the Harbor Bank of Maryland will lead efforts to provide low-cost loans and business support to minority businesses in Baltimore and Prince George’s County.
Click for more information about the Entrepreneurs of Color Fund.
About Capital Impact
Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We champion social and economic justice for underserved communities to foster good health, economic opportunity, and interconnectedness. Through mission-driven lending, incubating social impact programs, impact investing, and policy reform we partner with local communities to create equitable access to health care and education, healthy foods, affordable housing, and dignified aging for those most in need. We have disbursed more than $2.5 billion to revitalize communities over the past 35 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA-” rating from S&P Global and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.