A robust collaboration between JPMorgan Chase and Liberty Bank is helping New Orleans residents and business owners improve their financial health, education and banking abilities.
In 2021, JPMorgan Chase invested $10 million in Liberty Bank that helped the longstanding Black-owned institution better support small businesses, increase its mortgage lending capacity and refinance predatory lending products. The investment was part of a larger JPMorgan Chase initiative to better support diverse-led financial institutions across the country.
“Since the beginning, Liberty Bank’s primary goal has been to serve the underserved and foster economic growth in our communities,” said Liberty Bank President Todd McDonald. “The strategic partnership with JPMorgan Chase not only accelerates our commitment but also amplifies our ability to make a tangible difference. Thanks to this investment, we can continue to empower our customers, enabling them to prosper financially and foster community development. It’s partnerships like these that allow us to truly practice our values, build stronger bridges, and uplift the communities we serve.”
Greg Rattler, a managing director on JPMorgan Chase’s commercial banking team, said the investment was the next step in the business relationship between the two institutions. Liberty became JPMorgan Chase’s protégé bank in 2017, under the U.S. Department of Treasury’s Bank Mentor Protégé Program.
“This next step allowed us to explore other opportunities to collaborate and pursue banking activities together,” Rattler said.
Since the investment was initially made two years ago, Liberty Bank has grown its geographic footprint and conducted more lending in New Orleans. As an independent, locally-owned bank with a respected history in the community, the support of JPMorgan Chase has given Liberty the ability to expand its valuable work.
“This approach means that capital can flow into communities that we might not be able to reach as easily,” Rattler said. “Institutions like Liberty have a different lens into the small business community. We’ve been really happy to see capital flow to those entrepreneurs and others. It’s true that a rising tide lifts all boats. I think the impact has been positive for everyone involved.”
In addition to the investment, the partnership means JPMorgan Chase and Liberty staff have had discussions and collaborations in areas such as technical support and customer service. JPMorgan Chase teams have gleaned insights from Liberty that they can apply to their work with other diverse-owned institutions, while Liberty staff have gained access to ideas and practices to help their customers.
“For JPMorgan Chase and Liberty, this investment wasn’t the first work we’ve done together, and it certainly won’t be the last,” Rattler said. “It’s a big moment, but it is part of a continuum that we are very proud of.”
For example, as part of its Advancing Black Pathways and Advancing Hispanics & Latinos Fellowship programs, JPMorgan Chase previously positioned college students to partner with Liberty executives to identify new areas for potential growth and expansion. In addition, JPMorgan Chase and Liberty worked together in 2019 to help expand the BuildNOLA Mobilization Fund, which provides access to capital for entrepreneurs of color and women seeking to participate in public infrastructure projects.
Alden McDonald, who has been CEO of Liberty Bank since 1972 and is the longest tenured African-American financial executive in the country, said the relationship will help Liberty carry on his legacy of helping people in New Orleans as much as possible.
“Every day that I live, I want to drive change,” he said. “And every day, we come across someone extraordinary who needs help. The question we ask is, how do we help someone get to their dream?”
Based in New Orleans, Liberty Bank has grown over the past 50 years into one of the area’s most respected financial institutions with a focus on helping underserved communities. Today, Liberty is one of the largest Black-owned banks in the country and has branch locations in nine states.
Looking forward, JPMorgan Chase is continuing its initiative to support Minority Depository Institutions (MDIs) and Community Development Finance Institutions (CDFIs) across the country by providing additional capital, connections to investors, support for commercial projects, mentorship and training opportunities. This work will help banks like Liberty build for the long term.
“In my role, leading is not just trying to run for the stars. It’s embracing who we are and making sure that we stay mission-oriented,” said Todd McDonald. “We are experts at underwriting and making loans in communities that are distressed. When we work with an institution like JPMorgan Chase, we are able to do so much more.”
For more information, visit www.libertybank.net and www.jpmorganchase.com.
Source: theadvocate.com
