Three CDFIs Form Equity Atlanta Collaborative to Expand Lending to Housing, Small Businesses and Help Accelerate Economic Growth
(L-R) Nancy Wagner-Hisplip, Chief Investment Officer, Reinvestment Fund; David Balos, Managing Director, Georgia/Alabama Middle Market, JPMorgan Chase; Grace Fricks, President & CEO, Access to Capital for Entrepreneurs (ACE); John O’Callaghan, President & CEO, Atlanta Neighborhood Development Partnership (ANDP)
JPMorgan Chase & Co. has awarded a $4 million grant to Equity Atlanta Collaborative— a new group that brings together Access to Capital for Entrepreneurs Inc. (ACE), Atlanta Neighborhood Development Partnership (ANDP), and Reinvestment Fund. The nonprofits will work together to provide targeted loan capital and consulting services for high-quality affordable housing projects and small businesses in underserved communities in south Atlanta and Gwinnett County.
As part of JPMorgan Chase’s PRO Neighborhoods initiative, the new Equity Atlanta Collaborative partnership was selected and is one of five projects nationwide led by Community Development Financial Institutions (CDFIs) to accelerate economic recovery. The five CDFI collaboratives selected for the grant are located in Atlanta, Chicago, Detroit, Miami and New York. A total of$20 million will be granted this year as part of JPMorgan Chase’s $125 million, five-year PRO Neighborhoods commitment.
These collaboratives bring CDFIs together to pool resources and expand lending activities for important projects such as building affordable housing, education facilities, opening retail centers, and supporting main street businesses in key neighborhoods. The Equity Atlanta Collaborative will focus on creating or preserving over 700 affordable housing units and establishing over 1,000 jobs through small business and housing development.
“CDFIs are essential change agents to helping revitalize neighborhoods and create new economic opportunities for individuals and families, and this investment will help build more paths to prosperity in our community,” said David Balos, market leader for JPMorgan Chase in Atlanta and head of the commercial bank.
According to an impact assessment by The Harvard Joint Center on Housing Studies, JPMorgan Chase’s 2014, $33 million PRO Neighborhoods pilot program focused on disadvantaged neighborhoods allowed 26 CDFIs to raise more than $339 million in additional capital for local economic and social service projects. This has resulted in $270 million in loans, financing first-time home purchases, the preservation and development of 1,975 units of affordable housing, lending to 331 small businesses and creating and retaining 4,432 jobs.
“I want to thank JPMorgan Chase and the Equity Atlanta Collaborative for their investment in our most vulnerable neighborhoods,” said Mayor Kasim Reed. “By providing seed capital for rebuilding, they allow residents in communities that have been left behind to access affordable housing and other essential services close to home. This key partnership between a legacy business and a local nonprofit group will leverage homegrown expertise to give residents an opportunity to thrive and join the prosperity of our growing city.”
The Equity Atlanta Collaborative partners have demonstrated success in addressing the issue of economic inequality in Atlanta. ACE is the only small business CDFI loan fund in metro Atlanta, and ANDP is the only local (non-national) housing CDFI. With support from one of the nation’s largest CDFIs, Reinvestment Fund, these organizations will collaborate to devise comprehensive local solutions for some of metro Atlanta’s most vulnerable neighborhoods.
Together, Equity Atlanta Collaborative partners have committed to leveraging the $4 million grant from JPMorgan Chase to continue to increase new lending capital for housing and small business loans. The collaborative partners will also increase outreach to residents to expand access to capital through targeted educational programs and technical assistance. To learn more about these organizations, visit ACE (www.aceloans.org), ANDP (www.andpi.org), or Reinvestment Fund (www.reinvestment.com).
About PRO Neighborhoods
In addition to supporting CDFI partnerships, PRO Neighborhoods focuses on:
Holding our annual competition to identify innovative capital solutions to inclusive economic development.
Providing Affordable Housing Seed Capital to enable local partners to acquire, refurbish, and provide affordable housing in communities that are at risk of gentrification.
Employing data-driven neighborhood solutions to help cities better understand the most urgent problems facing distressed neighborhoods. This research helps local community development organizations better understand the implications of demographic shifts and help cities become smarter about what strategies work best and where to apply local support.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
ACE is a 501(c)(3) nonprofit and Community Development Financial Institution (CDFI) loan fund that provides loans and business consulting services to help borrowers throughout metro Atlanta and North Georgia create and grow stable, sustainable businesses that generate jobs. ACE specializes in working with underserved populations, particularly women, minorities and low-income business owners, to help drive economic mobility and build stronger communities. Founded in 1999, ACE has loaned more than $37 million to entrepreneurs, which has created or saved more than 6,600 jobs in Georgia. As a nonprofit, ACE relies on operating and program grants and private contributions to support a portion of its budget. ACE has offices in downtown Atlanta and Cleveland, Ga., and an ACE Women’s Business Center in Norcross, GA. Learn more online at: www.aceloans.org.
Established in 1991, ANDP’s mission is to promote, create, and preserve mixed-income communities that result in the equitable distribution of affordable housing throughout the metropolitan Atlanta region. ANDP’s subsidiary, and certified CDFI, the ANDP Loan Fund, provides capital for developers of affordable and mixed-income housing across metro Atlanta. Led by John O’Callaghan, President & CEO since 2006, ANDP has directed its resources toward addressing metro Atlanta’s foreclosure crisis and its aftermath. Since inception, the ANDP Loan Fund has provided $37 million in loans toward projects valued at nearly $270 million, ultimately supporting the creation of 4,954 units of housing. The organization is also a key leader of the Piece by Piece Regional Foreclosure Response Initiative, a network of 155 multi-sector stakeholders that have convened on an ongoing basis since 2010. Learn more online at: www.andpi.org.
About Reinvestment Fund
Reinvestment Fund’s mission is to build wealth and opportunity for low-wealth people and places through the promotion of socially and environmentally responsible development. Using analytical and financial tools, Reinvestment Fund brings high-quality grocery stores, affordable housing, schools and health centers to the communities that need better access—creating anchors that attract investment over the long term and help families lead healthier, more productive lives. Reinvestment Fund recently received an investor grade AA rating from Standard and Poor’s and is one of only six CDFIs nationwide with the top Aeris rating of AAA+1. Learn more online at: www.reinvestment.com.