Latina, Black Street Vendors in Los Angeles Get $5 Million Worth Support Initiative From JPMorgan Chase

JPMorgan Chase & Co. on Wednesday said that it committed $5 million to help Black and Latina street vendors in Los Angeles strengthen their businesses.

In a statement, the U.S.-based leading financial services firm cited a three-year commitment to support the Open Air Economy Collaborative, a partnership of local community organizations including Public Counsel, Inclusive Action for the City (IAC), California Reinvestment Coalition (CRC), and East LA Community Corporation (ELACC).

JPMorgan Chase said the four Los Angeles County-based groups would partner with them to accelerate economic growth for "open air" businesses owned by Black and Latina women across the county.

The company noted that this program would help local Black and Latina street vendors strengthen their businesses, which will provide economic opportunities for low-income and immigrant workers and play a vital role in promoting food access across Los Angeles.

The Open Air Economy Collaborative will provide some 500 street vendors and other micro-entrepreneurs with one-on-one coaching and more than 200 vendors with low-interest loans.

Small company owners will also be given assistance when navigating the permit approval process, overcoming financial challenges, and gaining access to support services, Bloomberg reported.

Latina Street Vendors in Los Angeles Face Various Challenges

Of an estimated 10,000 sidewalk food vendors working in Los Angeles, only 165 had received permits, according to a report from UCLA School of Law in August 2021.

In the open air economy, thousands more vendors sell merchandise and other goods.

Vendors face various challenges throughout the permit application process, hindering the majority from formalizing their operations and gaining access to essential business growth.

These barriers include a lack of translations of instruction materials into commonly spoken languages, severely limited commissary space, equipment barriers, and excessive rules that prevent the construction of affordable vending carts.

"Street vendors are an essential part of Los Angeles' economy and street vending offers a vital pathway for Latina and Black women entrepreneurs to establish successful businesses for their families and communities," Chase's Business Banking California Division director Diedra Porché said in the statement.

Even with recent changes to local laws, Porché noted that vendors continue to face barriers that prevent them from formally participating in Los Angeles' local economy.

"Supporting the Open Air Economy Collaborative will help underserved communities gain access to economic opportunities," Porché added.

According to Rudy Espinoza, Executive Director of IAC, the global pandemic has also disproportionately impacted Black and Latina street vendors and micro-entrepreneurs.

About JPMorgan Chase's Commitment

The three-year philanthropic investment in Los Angeles is part of JPMorgan Chase's $30 billion, five-year commitment to advance racial equity.

Paulina Gonzalez-Brito, Executive Director of the California Reinvestment Coalition, said they were "proud to partner to help dismantle barriers to access and ensure that Black and Latina micro-entrepreneurs have the financial and educational resources needed to thrive."

In 2018, JPMorgan Chase also launched the AdvancingCities, a $500 million, five-year initiative to invest in solutions to drive equitable solutions through community-based strategies.

What started as the AdvancingCities Challenge has attracted more than 600 proposals over three cycles. In 2021, the firm reportedly received more than 200 applications from nearly 80 communities across 34 states.

As of December 31, 2021, JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in stockholders' equity.

This article is owned by Latin Post.

Written by: Jess Smith

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