JPMorgan Chase pledges $30 billion to help close the racial wealth gap in the U.S.

JPMorgan Chase has pledged to support traditionally underserved Black and Latino communities with $30 billion to help close the U.S. racial wealth gap.

The goal of the bank’s pledge is to “drive an inclusive economic recovery, support employees and break down barriers of systemic racism.” The pledge will comprise of loans, investments and philanthropy over the course of five years, which goes beyond what the bank would normally do in its course of business.

A larger percentage of JPMorgan’s money pledge is assigned to housing. The bank says it will provide loans worth $14 billion and investments dedicated to creating 100,000 units of affordable rents in underserved communities.

In addition, the bank will generate 40,000 home purchase loans for Black and Latino households, with the inclusion of $8 billion in mortgages. Another 20,000 Black and Latino customers will be offered lower mortgage payments with $4 billion worth of refinancing. The bank will also provide 15,000 small businesses in Black and Latino communities with $2 billion in loans, and launch a new coaching program for entrepreneurs. An additional $750 million will be spent on Black and Latino suppliers.

In its philanthropic agenda, the bank said it will make available $2 billion, an expansion of a previous $1.75 billion five-year pledge it made in 2018.

“I am heartened to see JPMorgan’s specific, measurable commitments that we believe will address decades of systemic racism toward Black communities—and will bolster the well-being of families across the country, as well as our collective economy,” said the president of the National Urban League Marc Morial, in a statement.

Issues of racial disparities resurfaced after the gruesome murder of George Floyd on May 25 by police officers which sparked a series of nationwide protests. The coronavirus pandemic also played a role in revealing the wide wealth gap between white communities and minority communities.

“Systemic racism is a tragic part of America’s history,” said JPMorgan CEO Jamie Dimon, in a statement. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”

The bank also said it will provide 1 million people in underserved areas easy access to low-cost bank accounts, and would also open branches in low-to-moderate income communities.

JPMorgan isn’t the only bank that is committed to financially supporting minority communities. Citigroup and Bank of America also pledged $1 billion each to help battle racial inequalities.