JPMorgan Is Betting $100 Million on Detroit. Can it Leverage a Lot More?
JPMorgan is joining a growing class of Detroit business leaders funding revitalization efforts in the city. The bank has pledged a total of $100 million: $25 million to renovate of abandoned homes, $12.5 million to train residents for better jobs and $12.5 million to grow small businesses and improve city infrastructure. The biggest piece, $50 million, will go to a pair of community lending groups, Capital Impact partners and Invest Detroit, to support the redevelopment of a ring of neighborhoods teetering between stagnant distress and burgeoning revitalization. The hope is that JPMorgan's big investment can convince others to make new investments by signaling that these neighborhoods are on the mend, and there will be money to be made.