The largest bank in the United States will be announcing a huge investment opportunity for Detroit on Wednesday. JPMorgan Chance is planning on putting $100 million into Detroit, over a five-year period, in order to grow and strengthen the Motor City’s renovation. This money will be placed towards new jobs, updating rundown buildings, and offering loans for homes. Majority of this money will be offered as a loan, but some will be coming in as grants.
Over the past few months, Chase has been working closely with powerful figureheads, such as Governor Rick Snyder, Mayor Mike Duggan, and Dan Gilbert of Quicken Loans. CEO of JPMorgan Chase, Jamie Dimon, has followed the bankruptcy scandal of Detroit, and feels that it hits too close to home. She explained that the senior advisors of Chase felt that it was time to step in and make a difference for Detroit.
Chase has already made a strong name for itself in Detroit, offering personal and business loans, since the 1930’s. With such outstanding approval in the city limits, this decision to add value to Detroit was an easy choice. Governor Rick Synder is very hopeful and eager for this new venture. He explains, “I think it really helps and it sends a great message that people see significant value in investing in Detroit…” He added that this generous offering could propel Detroit perception into a positive place to sink roots.
Government officials in Michigan hope that this new plan will also push Lansing towards a vote on Detroit’s rescue plan. This plan states that the state would entrust Detroit with $350 million over the next 20 years, to protect pensions, artwork in the DIA, and other long-standing pieces of the city. Governor Snyder applauds Chase and their effort to invest in Detroit. With more private companies looking into the value of the city, more powerful players are sure to follow, pushing legislators in positive directions for Detroit.
In Southeast Michigan alone, Chase has over 2,000 employees and more than 1 million customers. Chase’s Executive VP of Corporate Responsibility, Peter Scher, states that Chase has been along for all the waves of Detroit’s ups and downs. Looking towards the long-term commitment and prospects, Chase is finding a way for Detroit to succeed in this ever-changing economy.
When Jamie Dimon first caught wind of Detroit’s bankruptcy woes, the discussion with executives and the board began. Seeking out other powerful Detroit investors, such as Dan Gilbert, Chase started forming their own contribution plans. It’s clear that with taking public and private opinion into high consideration, Chase was looking for the best financial options for Detroit. Over the past year, Scher stated that Chase looked at specific areas of the city, and where their money would have the most impact.
The $100 million will be funneled through existing projects in Detroit, with companies who are actively encouraging real estate projects, additional assistance for local businesses, and job training for Detroit natives. Specifically, the M-1 Rail project, Focus:Hope, Eastern Market, and other new and exciting programs will also benefit from this money.
With a long-standing history in Detroit, Chase is looking forward to the future that this city can offer the entire country. As they look to aid Detroit, Chase is also finding other ways to help additional communities across the globe, and the other 60 countries where their business stands. Finding solutions in Detroit means finding hope for the world.