Rebuilding Detroit after its horrendous decline is to be assisted by extra funding. It is expected to be announced today that New York multinational banking and financial service holding company JP Morgan Chase & Co is investing a further $50 million in the regeneration of Detroit. This comes on top of a $100 million 5-year commitment made to the city in 2014.
This extra $50 million was welcomed by city officials, particularly the public-private partnerships that have stimulated fresh growth. $13 million received from loan repayments is being reinvested and a further $30 million is being provided to help promote small business development. This type of business has made a significant input into Detroit’s resurgence.
Detroit has suffered severely due to the considerable decline of U.S. automobile manufacturing industry. This was followed by a steep decline in the financial fortunes of the city. A significant drop in working population was another result.
Up to now, JP Morgan Chase, America’s largest bank, had invested $105 million to fund urban regeneration in Detroit. This includes job training and helping small businesses through loans. It also funded significant sums into rebuilding Detroit residential and commercial areas.
Jamie Dimon, Chief Executive of JP Morgan Chase, Has been spending a good part of his time monitoring the progress of Detroit’s resurgence. He has attended personal meetings with those require funding to rebuild Detroit and its infrastructure.
Among these have been contractors carrying out rebuilding and repair work on residential and commercial developments. Labor is one asset that Detroit is not short of, and the bank is helping by offering funding where needed. It has been following the advice of Mayor Mike Duggan as to where money is best spent on rebuilding Detroit – not just in terms of homes and commercial premises.
There has also been a push to improve the economic growth of the city and getting back to being among the top 5 cities in the U.S. in terms of population. At one time, Detroit was home to over 1.8 million people – it is now believed to be around just over 677 thousand – just under 38% of what is once was.
Rebuilding Detroit is not an easy job. While there is plenty labor available, what is being done now could not have been achieved without the financial support of JP Morgan Chase and the moral support of its Chief Executive, Jamie Dimon. Even so, unemployment is 10.9% (2016 figure) and the crime rate is high, but it is expected the hoped-for Detroit resurgence will result in both being reduced.
Pvt. Ltd.
