NEW YORK–(BUSINESS WIRE)–March 24, 2022–
JPMorgan Chase (NYSE: JPM) has launched the Diverse Supplier Grant Initiative, a program to provide Black, Hispanic and Latino-owned businesses with access to the capital they need to secure business contracts.
Small and diverse businesses often find it prohibitively expensive to meet industry requirements such as cybersecurity, insurance, and bonding when bidding on new business. Meeting these prerequisites can cost a typical small business between $100,000 and $500,000, which creates a very real barrier to entry for doing business with the financial services industry.
JPMorgan Chase has partnered with Local Initiatives Support Corporation (LISC), a 501(c)(3) certified Community Development Financial Institution (CDFI), to administer the program. LISC will administer the initiative from start to finish and report on the impact of this capital assistance on participating companies. Impact measures will include new contracts with companies; the new calls for tenders for which the companies qualify, the number of jobs created and maintained; and revenue growth.
“Far too many otherwise qualified diverse companies are being prevented from securing contract opportunities due to the high cost of compliance,” said Ted Archer, global head of business partner diversity at JPMorgan Chase. “We are proud to join LISC, our leading vendors and other business partners to create an industry-wide solution that will remove common barriers to doing business and help build generational wealth. in various communities across the country. »
This initiative, which supports the company’s global commitment to advancing racial equity, creates an alternative financial resource for business owners to meet the high minimum standards of most businesses.
The Diverse Supplier Grant Initiative is structured to attract corporate donations, which JPMorgan Chase will match dollar for dollar. The company initially made $5 million available to match corporate contributions in 2022. So far, more than $1.2 million in pledges have been pledged from 28 companies.
For the past 30 years, LISC has partnered with JPMorgan Chase to support inclusive growth initiatives in communities across the United States – from affordable housing programs at the municipal level to national lending programs supporting entrepreneurs of color. and marginalized business owners. Last year, JPMorgan Chase chose LISC to lead the national expansion of its Entrepreneurs of Color fund.
“In our ongoing commitment to entrepreneurs, LISC wants to create market opportunities for aspiring businesses looking to work with supplier diversity initiatives nationwide,” said Steve Hall, vice president of business lending. small business and economic development at LISC. “LISC’s investments will play a catalytic role in supporting entrepreneurs, employees and communities.”
LISC will evaluate applicants and select eligible recipients who will generally be certified in the United States
Black, Hispanic, or Latino-owned businesses with established track records and annual revenues over $5 million. While open to businesses nationwide, JPMorgan Chase is particularly interested in vendors based in Chicago, Dallas, Houston, Los Angeles and New York, as these cities present immediate opportunities for the company to support its increased engagement in spending with Black Hispanic and Latino businesses. Funds can be used for tangible business and operational costs, including technology; cyber remediation or networking; operational control enhancements such as disaster recovery; increases in insurance and bonding coverage. Depending on the needs of the business, typical grants would start at $25,000 but would not exceed $200,000.
The integrated, fee-based component of the Diverse Supplier Grant Initiative is unique in that it is self-sustaining. Companies that receive funds and successfully secure new business deals are required to return the funds to the original pool so that they can be allocated to the next wave of eligible diversified companies. Those who do not obtain new business contracts through the program can request the cancellation of the loans or pay back the dollar amount they received without interest. Forgiveness criteria relate to a diversified company’s access to new corporate contracts and business growth.
“Lowering barriers to business readiness by closing a common financial gap allows JPMorgan Chase and other participating companies to develop a larger pool of diverse and capable businesses to integrate into their supply chains.” said Doug Roginson, program director and initiative architect for JPMorgan Chase.
Companies that invest in the initiative can refer potential candidates to various companies for capital, which in turn helps expand and diversify their supply chain. At the same time, diverse businesses that access capital through the program will be in a better position to grow as they qualify for more business deals across multiple industries.
Roginson continues, “With this initial grant, we could potentially transform up to 100 diverse companies in the near term, positioning them not just for contracts with JPMorgan Chase, but for opportunities with the entire Fortune 500.”
To learn more about the Diverse Supplier Grant initiative, click here.
To learn more about JPMorgan Chase’s work to advance racial equity, click here
About JPMorgan Chase:
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services company based in the United States of America (“USA”), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in equity as of December 31, 2021. The company is a leader in investment banking, consumer financial services and small businesses, commercial banking, financial transaction processing and asset management. Under the JP Morgan and Chase brands, the company serves millions of customers in the United States and many of the world’s largest businesses, institutions and governments.
Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com
LISC is one of the nation’s largest community development organizations, helping to forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so people and places can thrive. Since our founding in 1979, LISC has invested $24 billion to create more than 436,320 affordable homes and apartments and develop 74.4 million square feet of commercial, community and educational space. To learn more, visit www.lisc.org.
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KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
SECTOR KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: JPMorgan Chase & Co.
Copyright BusinessWire 2022.
PUB: 03/24/2022 08:00 / DISC: 03/24/2022 08:02