JPMorgan Chase & Co. (JPM) is investing $100 million over five years to revive bankrupt Detroit, marking the bank’s largest commitment to a city.
JPMorgan will provide funds for community development, blight removal, job training, small-business support and other growth programs, the biggest investment bank by revenue said today in a statement. The move follows as much as $15 million in loans to Detroit small businesses announced by Goldman Sachs Group Inc. (GS) in November, and signals Wall Street’s rising interest in the erstwhile auto-manufacturing capital, which faces $18 billion in long-term debt.
“We believe in Detroit’s future, and we want to see the city recover its economic strength,” Jamie Dimon, chairman of New York-based JPMorgan, said in the statement before a luncheon with community and government leaders in Detroit today. “With this investment, we are putting our resources and expertise to work to help Detroit chart a course back to economic prosperity.”
The New York-based bank’s commitment includes $40 million in flexible, long-term debt capital and $10 million in grant capital to two community-development lenders. Another $25 million will help end residential blight and restore properties, and $12.5 million will go toward work-force training and development. The investment also offers $7 million to support small businesses and $5.5 million in strategic initiatives, including investing in a new rail line.
To contact the reporter on this story: Elizabeth Campbell in Chicago at email@example.com
To contact the editors responsible for this story: Stephen Merelman at firstname.lastname@example.org Alan Goldstein