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An $850,000 investment from JPMorgan Chase to Ascend Long Island is expected to further empower entrepreneurs in low-interest communities in ways they need them most: access to low-interest loans, guidance and a pipeline of contracting opportunities.
JPMorgan Chase CEO Jamie Dimon delivered the news of the funding in person at a Chase branch in Huntington on Monday. Driving inclusive economic growth is a priority for the investment banking firm, as demonstrated by Ascend’s commitment to a national network that includes 14 cities and Long Island. In the year Launched in 2018, Ascend Long Island is managed by Hofstra University and BOC Capital and provides funding to small business owners, with a focus on underserved communities.
“It’s been 175 years since the Civil War, and the black community is not even close to being the same,” Dimon said Monday.
For many, the supply chain of large companies and consultants is out of reach with financing, said Lawrence Levy, executive director of the National Center for Suburban Studies at Hofstra University.
“America’s first neighborhood is, in my opinion, unfortunately America’s most segregated neighborhood, and it still has toxic implications,” Levy said.
Larry Levy, Hofstra University; Michael Dowling, Northwell Health; Jamie Dimon, JPMorgan Chase; Steve Bellon, Suffolk County; Nancy Karin, BOC Capital; Jeanique Druses, JPMorgan Chase. Photo by Judy Walker
But Ascend Long Island, with its resources, offers a way to mass-create wealth rather than fostering workforce development one employee at a time, Levy said.
Dimon’s in-person announcement showed his commitment and faith in the program, Levy said.
“It’s one thing to write a big check and have a lot of people involved in helping,” Levy said. But for someone like Jamie Dimon, a global leader who should be everywhere in the world, to actually show up here… it’s pretty special.
JPMorgan Chase’s leaders “looked for solutions to close the racial wealth gap,” said Seku Kalaund, head of JPMorgan’s consumer banking in the Northeast. “One of those solutions is entrepreneurship and supporting diverse businesses, especially black and Latino businesses.”
And in Nassau and Suffolk counties, “when all of our businesses succeed, especially the economically disadvantaged, all of Long Island succeeds,” Kalund said.
The funding announced this week will pay for the program, tuition and classroom space, Levy said. It also pays people to hire community members and connect companies with program members.
“If you’re lucky enough to get a contract with a big company, you have to have the capital to pay people to work for it before you get paid yourself,” Levy said. “You have to buy things, and that requires the ability to get a business loan. For someone who doesn’t have a track record at this level or doesn’t have the income yet, this is very difficult.
This is where BOC Capital comes in. “Their standards are strict, but not as strict as others to begin with,” Levy said. And since the program launched, JPMorgan Chase says it has invested more than $2 million. According to published reports, 55 entrepreneurs were awarded contracts worth an estimated $4 million.
Michael Dowling
“It’s about providing support, training and contracting to these communities by providing as much access to contracts as we can,” said Michael Dowling, president and CEO of Northwell Health, a partner in the program.
“A lot of people have great ideas, but they don’t know where to go and they don’t have the background,” Dowling says. “We offer them that kind of curriculum.”
Northwell is “heavily involved” with Ascend Long Island, Dowling said. The health care system is “increasing the volume of contracts” for minority- and women-owned businesses.
For example, in rebuilding Northwell South Shore University Hospital, the health care system is working with Ascend Long Island to connect with qualified entrepreneurs in Bay Shore, Brentwood and Central Islip, Levy said.
Ascend Long Island is working with National Grid on a weatherization program that requires construction expertise.
Nelson Roma, a member of National Grid’s sustainability and supplier diversity team, said the program leverages the company’s existing “procurement processes and practices” to land contracts with general contractors, prime and subcontractors.
“Diversity, equity and inclusion are at the core of the Long Island Association – if we do it, it will support our overall economic growth as a region,” said Stacey Sykes, Vice President of Governmental Affairs and Communications.
Dimon was on Long Island as part of a Northeastern bus tour. “A lot of businesses are doing better now,” he said in a personal interview. Still, businesses must “always be prepared for hostile events,” he said. You want to deal with them.
Monday’s announcement drew state leaders, including Suffolk County Executive Steve Bellone. The PSEG Foundation and the Long Island Community Foundation are also supporters.
Meanwhile, Ascend Long Island works with chambers of commerce such as the Long Island African American Chamber of Commerce and the Long Island Hispanic Chamber of Commerce to spread the word about the program through advertising.
Phil Andrews
LIAACC president Phil Andrews said owners want that level of professional support.
“The challenge for small business owners is to get capital to take on big projects,” he said. “Small business opportunities are often needed to provide a starting point for business growth.”
Andrews points out, “Many small business owners need more support and training than most programs provide, but studies show that small business owners with deep networks and connections have a greater chance of success.
“For these businesses, long-term advisors should be sought as much as possible,” he said.
Recently, LIAACC launched the Small Business Solutions Center to begin “analyzing the problems of small business owners. Solving the problems of small business owners requires a deep dive to uncover their problems and then provide viable solutions. Each resource brings its own unique value to small business owners, so a business needs multiple avenues of support.” It must be sought.
Levy said one of Ascend Long Island’s strengths is its community-oriented programming.
“At JPMorgan Chase, we don’t just decide at the top level. [members] They need to know and when they need to know,” he said. “What do you want first” and ‘What do you think you need help with?’ We find that. And if we line up, we will deliver. If not, we will try to find out who can deliver.” And if the two do not match, the organization says, but suggest other sources that can help.
Building every path to sustainable prosperity is part of it, leaders said Monday.
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