JPMorgan Chase & Co., together with A. James and Alice B. Clark Foundation and Capital Impact Partners, has invested $6.65 million into the Entrepreneurs of Color Fund with Clark Foundation and Capital Impact accounting for $3 million dollars of the total.
The money will be used to help support the expansion of minority-owned businesses in Washington D.C. including those owned by Asians, Latinos and blacks.
Owners of non-white businesses often experience investor bias which prevents them from working with professional service firms and getting federal government contracts.
Since 2015, the fund has provided around 200 loans in San Francisco, Chicago, Detroit and New York. It is part of JPMorgan’s larger Small Business Forward initiative that aims to help veteran, minority and women business owners. The company also plans to launch the Advancing Black Pathways (ABP) initiative to improve economic opportunities for African Americans. The ABP advisory council includes entertainer Kevin Hart, Mellody Hobson of Ariel Investments and former secretaries of state Condoleezza Rice and Colin Powell.
Despite all the efforts of JPMorgan to help people of color, it still struggles with in-house diversity issues but chief executive officer Jamie Dimon pledged to step-up hiring of more black workers.