Dimon sets $24 million JPMorgan push for U.S. shipbuilding

JPMorgan Chase Chief Executive Jamie Dimon announced a $24 million package Wednesday aimed at strengthening U.S. shipbuilding, including support for a submarine manufacturing facility at the Philadelphia Navy Yard. The bank said the funding sits within its $1.5 trillion initiative to finance industries it views as important to U.S. economic and national security.

The package includes $18 million in loans and investments and $6 million in grants, according to JPMorgan. The money will help finance a new submarine manufacturing site being built by Rhoads Industries, broaden credit for small businesses tied to the maritime sector and support regional suppliers.

Dimon described the effort in strategic and industrial terms during an interview with CNBC’s Andrew Ross Sorkin. “The arsenal of democracy has been reignited,” Dimon said.

The structure of the package combines repayable capital with grant funding. Loans and investments can provide financing for companies or projects expected to generate cash flow over time, while grants can be used to support activities that may not fit conventional credit requirements, such as supplier development or regional capacity building. JPMorgan did not provide additional terms for the financing in the reported announcement.

The Philadelphia Navy Yard has become a focal point in the bank’s shipbuilding push. Dimon pointed to Hanwha, the South Korean conglomerate, and its U.S. vessel-making subsidiary as evidence of renewed activity at the site. “People said it couldn’t happen, but here you have Hanwha shipbuilding at the Philadelphia Navy Yard,” he told CNBC.

Hanwha has announced a $5 billion investment in Philly Shipyard as part of South Korea’s commitment to expanding U.S. shipbuilding growth, according to information cited by CNBC. JPMorgan’s announced funding is separate from that wider industrial investment, with its immediate emphasis on the Rhoads Industries submarine manufacturing facility and related maritime businesses.

JPMorgan launched its $1.5 trillion security-focused financing program last year, according to CNBC. The initiative covers sectors the bank considers central to economic resilience and national security, including shipbuilding. CNBC reported that the bank expanded the program into Europe this year.

The announcement comes as governments reassess domestic industrial capacity amid heightened geopolitical tensions, including wars in the Middle East and Ukraine, CNBC reported. Defense supply chains, shipbuilding yards and specialized manufacturers have drawn more attention as policymakers and companies examine whether existing capacity can meet security needs.

For JPMorgan, the shipbuilding package places a relatively small dollar commitment inside a much larger financing strategy. The bank is using a mix of credit, investment capital and grants to channel funding toward parts of the maritime industrial base where it says private finance can support production capacity, supplier networks and small-business participation.

Dimon’s comments also signal the degree to which large financial institutions are linking industrial policy, defense readiness and commercial lending. JPMorgan’s announcement did not include forecasts for output, jobs or project completion timelines.

This story draws on original reporting from CNBC.