JPMorgan, the financial services giant, has invested $4.2 million into three organizations that will loan money to veteran-owned small businesses.
The company announced Monday the multi-million dollar contribution, which will benefit three community development financial institutions, including Carolina Small Business Development Fund, PeopleFund, and Main Street Launch. Such lenders seek to loan money to make a profit and fulfill mission-focused goals.
The investment is part of the company’s broader Small Business Forward initiative to invest $75 million over the next three years in businesses owned by folks from underserved backgrounds, according to a release on the news.
“Veterans make excellent business owners, so it makes perfect sense for us to help connect them with the access to capital they need to succeed,” said Andrew Kresse, CEO of business banking at the firm. “We’re pleased to work with outstanding partners who serve the veteran business community, and in turn, help strengthen the communities in which we all live and work.”
Also read: These entrepreneurs survived Shark Tank and share their secrets with vets
The bank recently found in its Chase Business Leaders Outlook study that veteran-owned businesses beat their peers on a number of metrics. For instance:
- In the next 12 months, more veteran-owned businesses expect to increase: profits, capital expenditures, and credit needs compared to non-veteran peers;
- Veteran-owned businesses also have stronger employment projections–more plan to increase employees/compensation compared to non-veteran peers;
- Veteran-run small businesses reported plans to hire more employees and report stronger optimism.
The contribution is a “philanthropic investment,” according to a press representative. As such, JPMorgan will not directly benefit monetarily from the loans, but it expects a return from the broader impact the loans will have on society.
The company also said Monday it renewed its partnership with Bunker Labs, an organization that provides veteran entrepreneurs with education and financial resources.
