JPMorgan Chase Allocates Over $2 Million to Advance Employee Ownership Initiatives, Strengthening Local Economies and Business Resilience
New funding will empower employee ownership, fostering business stability and expanding wealth-building opportunities for owners, employees, and communities.
JPMorgan Chase has announced a new commitment of over $2 million in philanthropic grants to four organizations advancing employee ownership—a model where workers gain partial ownership of their companies. This initiative aligns with the bank's broader goal of bolstering small and medium-sized enterprises (SMEs), enhancing business resilience, and creating sustainable wealth-building pathways in local communities.
The newly allocated funds will fuel educational programs and outreach that promote employee ownership as a viable business succession model. Through these efforts, JPMorgan Chase aims to address an urgent need in the SME sector: facilitating smooth ownership transitions as millions of business owners near retirement. Notably, 75% of business owners have expressed plans to exit within the next decade, yet nearly 60% lack a formal transition strategy.
Addressing the Succession Gap
A wave of business transitions is expected over the coming years, with around 12 million U.S. businesses likely to change hands by 2035. This “succession gap” creates an opportunity for employee ownership to serve as a pathway for continuity, enabling founders to exit on favorable terms while preserving jobs and fostering wealth-building among employees. Research suggests that legacy businesses generate 30% of local revenues and provide half of community employment. Additionally, employee ownership can deliver tax benefits and unlock growth capital, further enhancing the financial appeal of this model.
Jennie Sparandara, Managing Director and Head of Programs, Corporate Responsibility at JPMorgan Chase, remarked, “Employee ownership is a powerful tool for fostering resilience and building wealth. We are proud to support organizations that equip business owners with resources and knowledge essential to secure their legacies and empower their employees.”
Regina Carls, Head of J.P. Morgan's ESOP Advisory Group, highlighted the collective impact of employee ownership, saying, “Success in business stems from the contributions of every employee. We’re excited to announce new grants that empower individuals and promote a more inclusive economy.”
Targeted Grants to Strengthen Employee Ownership Ecosystem
The bank's $2 million allocation includes:
$1.1 million for Project Equity: This funding will help develop an industry-recognized certification in employee ownership for advisors assisting with business transitions. The certification aims to integrate employee ownership into the broader financial advisory landscape, expanding its accessibility to more business owners.
$500,000 for the Employee Ownership Expansion Network (EOX): The grant will enable EOX to expand its network of state centers dedicated to providing resources and education on employee ownership transitions. By increasing its capacity, EOX aims to reach more small business owners, advisors, and community leaders.
$500,000 for Ownership Works: Supporting initiatives to scale broad-based ownership models in large firms, the grant will assist in engaging private equity investors, expanding partnership networks, and conducting impact assessments to demonstrate the business case for employee ownership.
$75,000 for the Aspen Institute Employee Ownership Forum: This grant supports an annual convening of stakeholders in Washington, D.C., focused on elevating the dialogue around employee ownership as a vehicle for economic resilience and job quality.
The grants build on JPMorgan Chase’s prior investments in employee ownership, totaling over $1 million in 2023. These initiatives are expected to engage more than 1,500 business owners, advisors, and service providers, providing the resources needed for employee ownership transitions and fostering a stronger, more resilient business landscape.
Endorsements from Grant Recipients
Evan Edwards, CEO of Project Equity, praised the partnership with JPMorgan Chase, noting that it empowers the organization to help business advisors incorporate employee ownership into succession planning strategies. “This support enables us to drive productivity, enhance wealth-building opportunities, and foster continuity across the workforce.”
Steve Storkan, Executive Director of EOX, acknowledged JPMorgan Chase’s impact on expanding education about employee ownership: “With this grant, we’re able to significantly enhance our outreach and foster thousands of new employee owners nationwide.”
Anna-Lisa Miller, Executive Director of Ownership Works, emphasized the role of JPMorgan Chase’s support in expanding the employee ownership model to the corporate sector. “Together, we are building a broader employee ownership movement that holds promise for workers across the country.”
Maureen Conway, Vice President at the Aspen Institute, commended the bank’s support of the Employee Ownership Ideas Forum, which will convene leaders from diverse sectors to discuss employee ownership’s impact on economic opportunity and quality jobs.
A Strategic Investment in Community Wealth-Building
As SMEs face unprecedented generational shifts, JPMorgan Chase’s investments underscore the bank's commitment to fostering economic resilience and shared prosperity through employee ownership. By supporting education, training, and access to resources, the bank aims to position employee ownership as a mainstream option for business succession, creating a lasting impact on local economies and providing a robust foundation for sustained growth.